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Apple Pay — Integrated hardware, software, and services for payments
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@davemorin I know you can't comment on this, but your perspective would be extremely interesting considering the speculation that Apple is looking to acquire Path now.
This is a big deal. Payments are part of our everyday lives, and Apple is going to be there whenever you make a transaction. This is a new area for them. Massive reach.
@davidkmckinney Agreed. It's going to be the least talked about of the releases, but it's paradigm-shifting. Retailers will be now forced to begin adopting mobile payments
@davidkmckinney However the allegedly 'massive reach' is somehow limited to iPhone users.
Overall market share of iOS devices is down to ~15% (http://www.idc.com/getdoc.jsp?co...), which includes iPads as well.
Apple is in the position, when it comes to negotiations, to be known as a company with a unified product portfolio, which makes it comparably easy for third parties to create accessories (see sounddocks, AirPlay etc.). Google on the contrary has a hard time in negotiations, because the retailers would fear incompatibilities amongst the highly fragmented range of Android devices.
Apple could really nail this, if they would stick to non-proprietary open standards for NFC and release an Android ApplePay app! (You heard it here first ;))
...along with iTunes for Android.
@boettges Apple could/would never do that. They wanted to create a fantastic payment system that was easy and completely seamless. Android couldn’t ever be seamless like that, just point your watch and tap the checkmark or do Touch ID without even waking your iPhone 6. Though I know what you mean, that ^, along with their hate for Google, would lead them to never build anything for Android.
Apple showed up Google with this one. They're about to show just how important all of those amazing partnerships can take a technology (so long it works!)
It seems rather inflexible that Apple Pay is unable to access/use my Apple ID's default shipping address when purchasing Apple products via the Apple Store iOS app.
@chuckkahn was thinking that recently as well. Had to update my address in contacts for it to work correctly.
@mscccc Yeah, I guess I'm just used to shipping options being more fluid from the web and Amazon experiences so I was taken aback at how rigid Apple Pay was by comparison. "You're shipping my Phone where? Why? Well can you change it?"
"Apple does not charge users, merchants or developers to use Apple Pay for payments."
https://developer.apple.com/appl...
@erictwillis Millions of people will still use credit cards for another 10+ years. They had to expect this was coming.
@mzuvella Agreed. It takes time for the masses to adopt (CCs get the job one fine for most people)...and really it's going to take time for the retailers to adopt the technology. However, I don't think anyone expected Apple to roll out with national partners on this type of scale and with this kind of stack. Surely, Coin has considered some possibilities since they are in the market... I just wonder what some of the players in the payment eco-system think about this. To me, it makes the Coin solution seem like they're looking backwards while Apple is taking the market forward. I'm just talking about "perception".
@erictwillis Coin needs to step on the gas or they will definitely be going backwards. This Kickstarter way of business (way too many major KS campaigns have been delayed 6+ months) is getting old.
@mzuvella Agreed. I think I read the other day that 80 percent of KS hardware projects are delivered late. That's just unacceptable.
@erictwillis I didn't make it into the beta, and have them for a refund a couple of days before the Apple Event. Coin seems like it's too much work to setup compared to Apple Pay.
Apple Pay will change how you pay with breakthrough contactless payment technology and unique security features built right into the devices you have with you every day. So you can use your iPhone 6 or Apple Watch to pay in an easy, secure, and private way.
I actually think this was the most interesting release today and has more industry-reshaping ramifications than Iphone 6 or Apple Watch.
@erictwillis totally agree. It's kind of scary to think how well positioned they are to enter and dominate payments. They'll seed the Apple Pay userbase via in-app purchases, which will be appealing for devs to integrate, given transaction fees are competitive. Once brick and mortar POS systems are updated (very sluggish industry) to be NFC enabled, the transition from in-app to in-store Apple Pay usage will be seamless.
I'm curious to see how they differentiate Apple Pay in-app purchases vs. current in-app purchases through your Apple ID. The latter is for virtual goods only, with a hefty 30% transaction fee. If Apple Pay is competitive with other processors, which have sub 5% trans fees, why wouldn't devs switch to that instead?
EDIT: Found this page that clarifies using Apple Pay vs. In-App Purchases: https://developer.apple.com/appl...
@erictwillis agreed! This is the feature that I think will touch most people and raise the bar for mobile payments - including Android/Google Wallet. Scarf guy is a close 2nd.
Might be awkward but I would love to hear from some competitive/semi-competitive payment startups here on this. Unclear how much of the payment stack is ultimately going to be eaten by Apple in 5, 10 years
@basche42 Was just thinking the same thing. Maybe we can get some of them in here.
@erictwillis Looks like Stripe is party of Apple Pay now too. This is why I find their Passbook model so interesting: You could have a Stripe "card", you could have a Bank of America card, you could have a Visa card, you could have a PayPal card. Seems to me like some category on the above list is going to be left without a musical chair in 3-5 years
@basche42 Was just reading that here: https://stripe.com/applepay Agreed...the card concept is a really interesting payments play.
@basche42 Apples announcement is primarily competitive with two classes of startups companies: the wallet plays (LevelUp, Coin, LoopPay) and the processing partners (Square). Apps that manage bank relationships and transactions (CreditKarma, BillGuard) and those that act as your bank (Simple) are unaffected. It will be interesting to see whether Apple enters the remittance space (as Facebook is looking to do) and loyalty programs (Belly, etc.) once iBeacon comes online.
I think Apple Pay's impact on eCommerce will be substantially greater than offline for the next 3-5 years.
Conversion on mobile is a huge issue that people are trying to solve. The idea that you don't need a wallet for each app to checkout should be a win for merchants and consumers.
As the stream cut off constantly:
Did they talk about what Apple's cut will be on a transaction basis?
Percentage based cut of the transaction's amount or a fixed fee per transaction?
@boettges Didn't hear anything about the transaction costs. I'll look it up though.
@erictwillis Can't find any information. I guess it was completely left out together with any battery-talks today.
@boettges I'm also having a hard time finding anything. And yes..would have been nice to get something on the battery-times.
@boettges Looks like Apple is taking ~15-25 BPS for each transaction from all the participating banks.
"The biggest “surprise” over last 2 months is that Apple has squeezed 15-25bps from the 5-6 participating banks at launch (C, BAC, COF, JPM, Amex and perhaps WFC)." - http://blog.starpointllp.com/blo...
@arfrank 25bps works out to $2.5k for every $1M processed according to http://www.cardfellow.com/conten...
I find Apple Pay disappointing for many reasons:
1. In Europe (I don’t know about other parts of the world), we’ve had contactless payments via our credit cards for a while now. And between “getting my phone out of my pocket and having to put my thumb precisely on the iPhone’s home button” and “putting my card holder on the card reader“, I’m happily choosing the latter. The only upside to using Apple Pay might be the fact that there are no limits to the amount of money you can pay using this method.
2. Google Wallet has done something identical for a long time. I think that they haven’t marketed it enough, that’s why it’s not that popular.
3. On iOS, app developers can only add this feature if they use a payment provider that supports Apple Pay (see https://developer.apple.com/appl...). Therefore you might have to change your (or support another) payment provider in order to have this feature, and in doing so, you might have higher fees that you used to have.
4. I don’t get why they don’t merge Apple Pay with iCloud Keychain’s credit card. Because now you have to add your credit cards twice: first in Apple Pay so that you can use it to pay at brick-and-mortar stores and in iOS apps, and then in iCloud Keychain, so that you can get autofill in Safari iOS and Safari OS X. It would have been great to merge these two systems (three if you add the cards linked to your Apple ID?).
5. Finally, as underlined by points 1 and 2, there’s nothing really new here, and it’s disappointing that Apple didn’t have more vision on this. You still have to get something out of your pocket, whereas you could have just said your name before paying, as proposed by the retired Square Wallet.
@gregoiren Great list. With #4, I completely agree. I think they might — Apple didn’t mentioned OS X at all during the keynote, and I think there’s a good chance they’ll add Apple Pay to Yosemite. On the other hand, they say no information leaves your iPhone — though maybe this is separate. Hard to know yet.
@gregoiren RE: #2 it's not quite accurate. Google Wallet has done this for some time, but Google's solution required a carrier SIM with mobile payment technology (the secure element was stored there) so that they can make a cut. Apple's circumvents this entirely.
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