Apple Pay hits 1,000 US card issuers ahead of planned retail expansions

Posted:
in iPhone
On Friday Apple reached the 1,000 mark for the number of U.S. card issuers supporting Apple Pay, a figure continuing to outpace the number of retail chains supporting the platform.




Apple hit the total by adding 32 more entries to its roster, the new ones consisting of mostly of smaller regional institutions. Technically the company only has 998 banks and credit unions, but other issuers include retailers BJ's Wholesale Club and Kohl's.

Apple Pay is usable at over 2 million locations, but to date, the number of supporting U.S. retail chains is still a fraction of the number of issuers. The situation should improve somewhat in 2016, thanks to the addition of merchants like Au Bon Pain, Crate & Barrel, Chick-fil-A, JCPenney, Starbucks, and KFC.

The platform is also due to expand further overseas, for instance coming to countries like China and Spain, though in some cases it will only be through American Express.

The full list of new issuers includes:

  • Anderson Brothers Bank
  • Bank & Trust Company
  • Bank of Labor
  • Bank of Yazoo
  • BankWest
  • Brown County State Bank
  • Busey Bank
  • Campbell & Fetter Bank
  • Central Bank of Oklahoma
  • Collinsville Savings Society
  • Core Bank
  • Covantage Credit Union
  • Diversified Members Credit Union
  • Farmington Bank
  • Florida Parishes Bank
  • Fort Worth Community Credit Union
  • Great Midwest Bank
  • Horizon Bank, N.A.
  • Litchfield Bancorp
  • Luther Burbank Savings
  • Mississippi National Guard Federal Credit Union
  • Oregon Community Credit Union
  • Pathfinder Bank
  • Platinum Federal Credit Union
  • Qualstar Credit Union
  • Red River Bank
  • Seven Seventeen Credit Union
  • T Bank
  • The Citizens Bank
  • Titonka Savings Bank
  • US Employees O.C. Federal Credit Union
  • Wallis State Bank
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Comments

  • Reply 1 of 45
    In other news, Samsung has doubled their banks from 30 to 60.

    This is a race Samsung can't win. By the time they get most banks online their MST technology will be obsolete.
    calicornchip
  • Reply 2 of 45
    lkrupplkrupp Posts: 9,991member
    One good thing I’m seeing now is that retail clerks are more aware of Apple Pay and NFC payments in general. I get a lot less of the, “I’ve never seen that. What is that? Your watch?” comments these days.
  • Reply 3 of 45
    Great can we get more retailers now? Yes I'm looking at you Target.
    leptoncalirazorpitpatchythepirate
  • Reply 4 of 45
    josujosu Posts: 217member
    I insist until Apple Pay don't reach to near 100% of the iOS installed base, and don't reach a similar percentage of all markets in which iOS devices are sold, we will not see the real potential of it. Right now is a very limited service, and only the most recent devices support it, if you got an Apple Watch is supported by a couple of iPhones more. And, sorry if I'm wrong, but only is available in five countries.
  • Reply 5 of 45
    boredumbboredumb Posts: 1,418member
    In other news, Samsung has doubled their banks from 30 to 60.

    This is a race Samsung can't win. By the time they get most banks online their MST technology will be obsolete.
    I'm afraid I disagree, but, time will tell, I suppose...
    I expect it will be just one more example of an inferior product
    more effectively sold to an ignorant public - kind of 'retail in a nutshell'...
  • Reply 6 of 45
    Just used Apple Pay at McDonalds...the worker did not believe that i ran payment because i never pulled out a credit card. I had to get the manager to come over and he rolled his eyes and said "yes that is Apple pay"...I agree it is getting better but a huge training effort needs to be put in place. I also had a small merchant where I get may haircut use the new square reader for Apple Pay. Worked awesome. I had been bugging her from the beginning to get it and now she has it. She said square actually is giving them out for free. They basically put your next $50 in fees towards the payment of the reader...great way to get smaller merchants to hop on board.
    jdgazrazorpitcornchipjbdragonbrakken
  • Reply 7 of 45
    knowitallknowitall Posts: 1,648member
    How many card issuers does AP need to be successful?
    In Europe we have bank cards that do the same and cost a fraction of a fraction of an iPhone, I don't think anyone will be interested even if it is available.
  • Reply 8 of 45
    poksipoksi Posts: 482member
    In UK almost all was done at launch. Major banks and this was it. Withe exception of Barclays morons that hoped they will kill Apple Pay with their wrist bands :D Problem is getting aboard all the retailers and the biggest problem is limiting payment to 30£. Same rule for contactless credit card without pin and Apple Pay with fingerprint authentication... Stupid... :(
    cornchip
  • Reply 9 of 45
    Just used Apple Pay at McDonalds...the worker did not believe that i ran payment because i never pulled out a credit card. I had to get the manager to come over and he rolled his eyes and said "yes that is Apple pay"...I agree it is getting better but a huge training effort needs to be put in place. I also had a small merchant where I get may haircut use the new square reader for Apple Pay. Worked awesome. I had been bugging her from the beginning to get it and now she has it. She said square actually is giving them out for free. They basically put your next $50 in fees towards the payment of the reader...great way to get smaller merchants to hop on board.
    Apple could probably have bought out Square* or done something similar, leveraged it's incredible hardware design and assembly skills, and offered a 1.75% fee (instead of Square's 2.75%), and made a killing of it.....

    They still could, if they wanted to.

    (*Its current market cap is ~$3B, so $4.0-$4.5B offer, which is chump change for Apple, will probably suffice!).
    edited February 2016
  • Reply 10 of 45
    eightzeroeightzero Posts: 2,694member
    Just used Apple Pay at McDonalds...the worker did not believe that i ran payment because i never pulled out a credit card. I had to get the manager to come over and he rolled his eyes and said "yes that is Apple pay"...I agree it is getting better but a huge training effort needs to be put in place. I also had a small merchant where I get may haircut use the new square reader for Apple Pay. Worked awesome. I had been bugging her from the beginning to get it and now she has it. She said square actually is giving them out for free. They basically put your next $50 in fees towards the payment of the reader...great way to get smaller merchants to hop on board.
    Apple could probably have bought out Square* or done something similar, leveraged it's incredible hardware design and assembly skills, and offered a 1.75% fee (instead of Square's 2.75%), and made a killing of it.....

    They still could, if they wanted to.

    (*Its current market cap is ~$3B, so $4.0-$4.5B offer, which is chump change for Apple, will probably suffice!).
    Or skippit, and build the technology right into the iPhone, iPad, and iPod. Every device a terminal. 
    cali
  • Reply 11 of 45
    volcanvolcan Posts: 1,799member
    Great can we get more retailers now? Yes I'm looking at you Target.
    Like many other US retailers, Target just replaced all of their terminals with new chip reader models sans NFC. They are not likely to replace them again any time soon. Same situation with Home Depot.
    edited February 2016
  • Reply 12 of 45
    MarvinMarvin Posts: 14,780moderator
    I'd like to see a bigger push for it in e-commerce. That is still vulnerable to card theft and there are billions of transactions done this way:

    http://www.statista.com/statistics/369333/number-ecommerce-transactions-worldwide/

    Small retailers either don't hold card details at all, requiring you to enter the numbers and CVV code for every transaction or you have to do this the first time and they store the card details on their own servers that can be compromised, even long after you made a transaction. With the likes of Pay, when you buy something online, you can visit a whole new website, fill up the basket and just start the Pay transaction and not have to put any card details in manually and it can fill in address details for shipping.

    This can be done by linking the smartphone up to the Mac/PC locally via Bluetooth or wifi to initialize the transaction. Future Macs could have a fingerprint reader installed but using the phone for this would be fine. That will get millions of people who do most of their shopping online into the habit of using the phone for payments so it will come more naturally when they pay in retail stores.
    calicornchip
  • Reply 13 of 45
    volcan said:
    Great can we get more retailers now? Yes I'm looking at you Target.
    Like many other US retailers, Target just replaced all of their terminals with new chip reader models sans NFC. They are not likely to replace them again any time soon. Same situation with Home Depot.
    Target is on a cash-only basis with me. They get zero marketing data eveey time I shop there and at least I know none of my personal information is at risk from future hacks.
    edited February 2016 jfc1138jbdragon
  • Reply 14 of 45
    And 1 in Canada! #progress
    cornchip
  • Reply 15 of 45
    rob53rob53 Posts: 2,985member
    volcan said:
    Great can we get more retailers now? Yes I'm looking at you Target.
    Like many other US retailers, Target just replaced all of their terminals with new chip reader models sans NFC. They are not likely to replace them again any time soon. Same situation with Home Depot.
    I haven't looked at Target's new POS system but found an article that supports your statement. http://www.expertmarket.com/What-Point-Of-Sale-System-Does-Target-Use It says they designed their own system, which means it will fail because it's a one-off system without any history. Home Depot worked with Pay Pal, another company that's been hacked, for theirs. http://www.expertmarket.com/What-Point-Of-Sale-System-Does-Home-Depot-Use I don't know how recent this information is for any of the companies mentioned but it shows the typical insanity of hand built systems without any consistency between merchants and vendors making life miserable for customers.
    cornchip
  • Reply 16 of 45
    volcanvolcan Posts: 1,799member
    Marvin said:
    I'd like to see a bigger push for it in e-commerce. That is still vulnerable to card theft and there are billions of transactions done this way:

    Small retailers either don't hold card details at all, requiring you to enter the numbers and CVV code for every transaction or you have to do this the first time and they store the card details on their own servers that can be compromised, even long after you made a transaction. With the likes of Pay, when you buy something online, you can visit a whole new website, fill up the basket and just start the Pay transaction and not have to put any card details in manually and it can fill in address details for shipping.

    This can be done by linking the smartphone up to the Mac/PC locally via Bluetooth or wifi to initialize the transaction. Future Macs could have a fingerprint reader installed but using the phone for this would be fine. That will get millions of people who do most of their shopping online into the habit of using the phone for payments so it will come more naturally when they pay in retail stores.
    Sounds all well and good however many security vulnerabilities assuming you are talking about an e-commerce webpage. Apple would never allow this. The secure chip needs to communicate directly with Apple's validation server. The only way it can work is through an iOS app or a retail POS. The encrypted token can't be sent to a web page. The only way I could see it working is if the retailer had an iOS app and you were a registered user. Then after filling up your basket on the web page, clicking 'Next' the web page could trigger a notification to your iOS device where you could open the app and your shopping basket would be displayed. Then you could complete the transaction through the iOS app.
  • Reply 17 of 45
    genovellegenovelle Posts: 1,379member
    volcan said:
    Great can we get more retailers now? Yes I'm looking at you Target.
    Like many other US retailers, Target just replaced all of their terminals with new chip reader models sans NFC. They are not likely to replace them again any time soon. Same situation with Home Depot.
    I think that was a foolish move on their part. I thought the chip reader was a good idea, until I realized it is less secure than debit cards. They have direct access to you bank account, but don't require a pin. Card dropped on the Walmart parking lot and there's a shopping spree before you even know it's gone. All they have to do is stick the card and leave it. 
    jbdragon
  • Reply 18 of 45
    volcanvolcan Posts: 1,799member
    genovelle said:

    I think that was a foolish move on their part. I thought the chip reader was a good idea, until I realized it is less secure than debit cards. They have direct access to you bank account, but don't require a pin. Card dropped on the Walmart parking lot and there's a shopping spree before you even know it's gone. All they have to do is stick the card and leave it. 
    That is not quite the way it works, or at least not the way it should work. Although most retailers don't bother, they really should require a matching photo ID with the credit card. Even though a debit card uses a pin, it is not as protected as a credit card if it does get compromised. Credit cards offer much better reimbursement if it is compromised, hence I favor credit card over debit except at ATMs. The purpose of the chip card is that greatly reduces the ability of a store clerk from double swiping the card and then using the data in duplicating the mag-stripe on a fake card.
    edited February 2016
  • Reply 19 of 45
    stompystompy Posts: 389member
    volcan said:

    Like many other US retailers, Target just replaced all of their terminals with new chip reader models sans NFC. They are not likely to replace them again any time soon. Same situation with Home Depot.
    The 3 Home Depot locations I frequent already had EMV with NFC support in 2014. I used Apple Pay at these 3 stores from the end of 2014 to roughly May of 2015 (ironically, when Home Depot officially promised future support for Apple Pay, it abruptly stopped working).

    I suppose it's possible Home Depot actually replaced the terminals with less capable ones, but if they did, they replaced them with used lookalikes: the exteriors are identical, right down to the wear marks. 

    edited February 2016
  • Reply 20 of 45
    bobschlobbobschlob Posts: 1,074member
    Yeah. Definitely getting sick of hearing about "issuers". Issuers are definitely not the problem (yes, there is a problem)
    john.b
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