2% to 5% for moving bits around, with a smattering of security and antifraud, is no way to run a modern payments system. It didn't even cost that much to move

2% to 5% for moving bits around, with a smattering of security and antifraud, is no way to run a modern payments system. It didn't even cost that much to move cash and checks around in the old days. Retailers, for whom it's a big chunk of their margins, are up in arms about it, the Fed is up in arms about it and pushing a move to intraday EFT and ACH, and tech like Bitcoin and better security of e.g. Apple Pay is moving against it. Payments are going to change. For all the over the top rhetoric, the basic claim that securing the device against any and all hackers is critical to Apple's brand and ambitions, and the idea that Apple could do an end-run around the credit card companies and banks and try to run the table in payments, are totally on target. Keep in mind that Apple gives law enforcement everything it knows in response to a legit request, the phone doesn't make the payments system less transparent to law enforcement. On the contrary, Apple's ability to maintain a closed garden is key to maintaining a degree of control over payments and comms.