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Apple Pay sits on top of the credit card industry. Do you believe they will remove that layer one day, and tie directly to your bank account? As I understand th
by martin_drapeau 11y ago
Apple Pay sits on top of the credit card industry. Do you believe they will remove that layer one day, and tie directly to your bank account?
As I understand the payment industry is incestuous and has become a commodity. Its ripe for anyone to replace it. Apple seems to be in a good position to do that over time.
- snowwrestler 11y agoI don't know why they would bother. Apple Pay as architected now outsources all the pains in the butt to the existing payment processors: getting terminals into stores, dealing with chargebacks and fraud, and providing regulatory compliance. Apple gets to deal only with with their existing customer base, take a tiny tax for authenticating transactions, and enhance the value perception of the iPhone and Watch, which is where they actually make their money.
- martin_drapeau 11y agoCredit Cards, issuers, acquirers, gateways, etc - the whole payment intermediary grabs around 3%. Most of that could all go to Apple one day. Why leave it on the table?
- jagermo 11y agoI think Rogers in Canada has already done that, haven't they? It might be hard, but it is not impossible to get a banking licence, if you have the money for it.
- martin_drapeau 11y agoApple doesn't have to become a bank. There is a lot of money to be made sitting between the bank and the customer (2%~5% of a transaction). Today, VISA and Mastercard grab most of that. Apple could replace them. In a few years, there will be more Apple devices with Apple Pay than issued VISAs. When Apple Pay is accepted everywhere, credit cards will be doomed.