Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
Apple Negotiates Lower Transaction Fees With Credit Card Issuers for Mobile Payments Initiative
As part of its upcoming payments initiative, Apple has reportedly negotiated deals for lower credit card transaction fees with several credit card issuers. According to Bank Innovation, Apple has entered into agreements with American Express, JP Morgan Chase, Citigroup, Capital One, and Bank of America.
The banks have agreed to allow all of Apple's transactions to be conducted as "card present," a set fee charged when a customer uses a card in a physical retail location. Typically, there's also a higher "card not present" fee that's charged when a card is used online, due to security issues. Apple's also managed to secure a lower "card present" fee on top of that, cutting its costs further.
Beyond that, Apple has also managed to bump down the actual "card present" rate by 15 to 25 basis points, according to people with knowledge of the talks. Normal "card present" discount rates, which are shared by issuers and networks but determined by the network, are about 1.5%, which means that Apple appears as though it will get around a 10% discount on the processing rate it will pay. Last quarter, Apple generated $4.5 billion of iTunes revenue -- this implies that Apple will save at least $27 million as a result of these deals with the banks. Of course, more revenue volume is expected upon launch of Apple's payments venture.Apple has reportedly been able to negotiate this lower rate by ensuring banks that transactions will be secure, both through the use of the NFC chip which reports location, and through Touch ID, which will be used to authenticate transactions.
In addition to signing deals with several financial institutions, Apple has also managed to secure deals with major credit card companies Visa, MasterCard, and American Express, and it's also been speaking with various retailers about its upcoming payments service.
Rumors have suggested that Apple's payment service will allow iPhone owners to use their devices to make payments both online and in retail stores, possibly linking credit cards to existing iTunes accounts. Apple is expected to announce its mobile payments initiative during its September 9 media event.
Related Roundup: Apple Pay
[ 77 comments ]
Top Rated Comments
(View all)
64 months ago
You see, like the tablet, Apple is doing what it does best. Instead of inventing the tablet, it revolutionised the tablet industry and made people want one.
With NFC, Apple may not be the first to use it, however, they're likely to change the way people use it- enhancing it, for the better.
With NFC, Apple may not be the first to use it, however, they're likely to change the way people use it- enhancing it, for the better.
64 months ago
This is very exciting :D If apple does it right, paying with smartphones may become the norm.
64 months ago
If this is true I think it confirms Touch ID is coming... The card not present additional fee is used for the banks to recoup losses because of the increased chance of fraud and therefor loss for the bank. I'd think the only way the banks would agree is if there was an increased security to ensure fraud isn't possible.
Matter of fact, if this is the case it would make my credit card more secure than using the actual credit card. iPhone/iWatch + fingerprint security > credit card with a signature
Matter of fact, if this is the case it would make my credit card more secure than using the actual credit card. iPhone/iWatch + fingerprint security > credit card with a signature
64 months ago
You see, like the tablet, Apple is doing what it does best. Instead of inventing the tablet, it revolutionised the tablet industry and made people want one.
With NFC, Apple may not be the first to use it, however, they're likely to change the way people use it- enhancing it, for the better.
Thanks captain obvious
64 months ago
And finally we may catch up to Japan which has had Suica built into cell phones for what, a decade? :rolleyes:
64 months ago
You Americans and your fees for everything, lol.
The business of America is business. -Calvin Coolidge
[ Read All Comments ]
An escalating trade war between Japan and South Korea could make Chinese manufacturer BOE Technology a "strong contender" for OLED display orders from Apple, according to industry sources who...
iPhone loyalty has hit its lowest level since 2011 and Samsung has been the main benefactor, claims a new survey conducted by trade-in service BankMyCell.
The survey, cited by CNET, tracked...
Sky: Children of the Light, by Journey developer thatgamecompany, is now available for iPhone, iPad, and iPod touch. Its release follows last year's launch of the beta version of the game, titled...
Plex today announced a few updates for its Apple TV and iOS apps, adding notable new features that are worth highlighting.
The Apple TV app now supports HDR video playback, and Plex Pass...
The newest version of Spotify for iOS, released yesterday, quietly added support for Apple's multitasking Slide Over and Split View feature on the iPad.
As noted on Reddit and highlighted by...
Apple today seeded the fourth beta of watchOS 6, the software that runs on the Apple Watch. The new beta comes two weeks after the third beta and more than a month after Apple first unveiled the new...
Apple today seeded fourth beta of an upcoming tvOS 13 update to developers, two weeks after seeding the third beta and more than a month after unveiling the tvOS 13 software at the Worldwide...
Belkin today announced the launch of three new wireless chargers in its BOOST lineup, all of which will be available from Apple's online store and select Apple retail locations.
All of the...
