May 25, 2022

Apple Pay fees cause friction between banks and Apple

Apple Pay Photo: CardMapr/Unsplash CC

Apple Pay expenses banks money
Whenever an iPhone owner uses Apple Pay to make a charge card deal, the bank that released that card needs to give Apple 0.15% of the amount, according to The Wall Street Journal. Thats a tiny sum– 15 cents on a $100 purchase– but it builds up. And the card providers are not delighted.

Cupertino make money from every Apple Pay deal. And the money originates from big banks that release the charge card that get entered into the iPhones virtual wallet. Now, the banks are apparently pressing to have the charges lowered.
And the truth that Apple created its own charge card to complete with the banks only made things even worse.

Not remarkably, Apple is resisting any modification. However Visa may modify the method it deals with returning deals. The WSJ reports:

Apple Card ends up being bone of contention
The 2019 launch of the Apple Card in cooperation with Goldman Sachs made Apple something of a direct competitor with the banks that issue other charge card. Some executives at Bank of America, Capital One and JPMorgan Chase apparently think the Apple Pay charges they need to dish out are now going to a competitor.

Cupertino revenues from every Apple Pay transaction. And the cash comes from big banks that issue the credit cards that get entered into the iPhones virtual wallet. Not remarkably, Apple is resisting any change.

” When consumers fill their charge card onto Apple Pay, Visa concerns an unique token that replaces the card number. That allows the card to work on Apple Pay and likewise helps keep the card safe in a prospective information breach, to name a few benefits.
” Visa plans to start utilizing a various token on repeating automated payments. That efficiently suggests that after a first payment is made on a subscription, Apple wont get charges on the following deals.”