It was reported prior to the launch of Apple Pay, the one-touch mobile payment system for iPhone and Apple Watch, that Apple would receive a portion of the fees collected by major financial institutions on every transaction. According to a new Financial Times report this afternoon, it’s true: a claimed 15 cents on every $100 purchase goes to the iPhone maker, according to two sources that are familiar with the private agreement.
While large banks in the United States might be reluctant to give up a portion of their revenue to Apple, it is perhaps their only chance to be involved with the service. Apple is arguably the most popular tech company in the world, and its over 800 million iTunes accounts with credit cards linked means that Apple Pay has a lot of potential to be widely adopted by consumers. Merchants certainly agree, as Apple Pay will have over 220,000 store partners and counting.
Just don’t count Walmart and Best Buy. It was reported earlier this afternoon that the two major retailers do not have plans to upgrade their point-of-sale systems with Apple Pay support in the near future, but perhaps long-term adoption of the platform could have them change their mind.
Apple Pay is powered by the new NFC chip on the iPhone 6 and iPhone 6 Plus. The system stores your payment info in an encrypted and secure fashion, with the help of Touch ID and the new A8 chip. The platform is also integrated with Passbook, delivering one-touch checkout with no card number entry or typing an address required. The service could help redefine the payments sector, much like the iPod and iTunes revolutionized the music industry.
You will need an iPhone 6 to use Apple Pay, or an iPhone 5, iPhone 5c or iPhone 5s paired with an Apple Watch.
[via Financial Times]