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With the rise of smartphone payments like Samsung Pay, Android Pay and Apple Pay , is there even a need for credit cards? How long until these companies start
by nabaraz 8y ago
With the rise of smartphone payments like Samsung Pay, Android Pay and Apple Pay , is there even a need for credit cards?
How long until these companies start skipping payment processors like Visa and Mastercard and take the whole pie?
- Hippocrates 8y agoI suspect these are the first logical steps in doing just that.
- CSDude 8y agoThere are lots of places where any of the payment methods you mentioned are available, so until then.
- sk5t 8y agoYMMV but I absolutely will not bite on non-creditcard-facilitated payments until/unless the same or better consumer protections are in place.
- coldtea 8y agoWho said they are not?
- onlyrealcuzzo 8y agoWait. What? I use credit cards for the consumer protections they provide. A store claims to have some type of return policy -- if I buy with credit, and they don't follow that policy -- I get my money back no matter what. With cash, that's not guaranteed. What do you mean?
- gervase 8y agoThat is exactly what the parent was saying. They would not consider a financial product that bypasses the major payment processors (Visa/MC) unless it has similar customer protections built in.
- onlyrealcuzzo 8y agoI'm confused. The Apple card is a MasterCard.
- sk5t 8y agoAnd the post at the head of this thread contemplates the utility of Visa/MC in general. Not really a concern leveled at Apple's thing in specific, and I wouldn't want my concern about consumer protections to be construed as such.
- mikestew 8y agoThe original question: How long until these companies start skipping payment processors like Visa and Mastercard? Should that come to pass, the Apple card becomes...an Apple card.
- onlyrealcuzzo 8y agoI see. I guess it seems fundamental to me that a credit card would have these properties -- even though it's not necessary to actually fulfill the role of a credit card -- which is just to provide credit. The two seem intertwined, even though they aren't. I just assumed Apple -- if they became a payment processor -- would still provide those protections. If they didn't, which I see is maybe what the OP was alluding to, why would anyone use the card?
- thirdsun 8y agoIt's probably a different discussion, but I think the actual problem is that in the US consumer protection seems to be an optional feature of certain payment methods, like credit cards, rather than universal legislation applying to all consumers and sellers. I think consumers should benefit from a reasonable set of protections and rules regardless of which payment method they use to complete a transaction.
- thinkingkong 8y agoApple Pay isnt special and its not a separate network. All the payment systems that take tap take these payment types. There are other direct to bank account systems like Interac that skirt around the traditional “pay later” idea, without fees or benefits to the user. All in all you could just do a direct to bank account NFC transaction but why would any company do that when they can build up an ecosystem?
- bk_mtn_man 8y agoI don't live in a tech hub city but in all my shopping I have never seen anyone use one of the Apple/Samsung payment methods where I live. Even when I spent months in Silicon Valley I can count the number of times I saw it used on one hand.
- runako 8y agoHere in the Southeast of the US, the adoption of Apple Pay (and I presume Samsung Pay) has definitely been increasing. Square/Clover/all the POS's used by coffeeshops and other small businesses have been taking Apple Pay for a few years now. But recently CVS started taking it, and CVS is everywhere (~6,200 stores in the US). Whole Foods is on Apple Pay. I understand Target will be following soon. It's still not 100% penetration, but it definitely feels like the adoption expands every time a shop upgrades its POS.
- Cyph0n 8y ago> I understand Target will be following soon. Target has already deployed Apple Pay in NC at least. I only recently bought an iPhone, but I was pleasantly surprised by the number of merchants that accepted Apple Pay.
- delfinom 8y agoTarget has been resisting and dragging their feet because they really really really want people to use their store card instead.
- novok 8y agoI would like to use their store card, with some sort of NFC payment system. It's not that hard.
- larkost 8y agoIt is not actually NFC, but if you use Target's App you can put your "Red Card" (target's in-house credit card) into your App and have a single scan for both their coupons system (Cartwheel) and payment at once.
- dwighttk 8y agokinda like checks. Most people probably won't need them, but they can be useful in some circumstances.
- weego 8y agoI've never owned a credit card but I've used my debit card directly twice since Christmas because GPay is available everywhere. It's only the ceiling on contactless transactions (£30) that requires me to use it
- oarsinsync 8y agoThe cool thing about the latest iteration of PoS terminals is that they enable contactless transactions over £30 if paying by Apple Pay (and possibly GPay too, unsure). I've paid >£30 Tesco shopping sprees using Apple Pay without any issue.
- djmobley 8y agoWould advise against using a debit card for anything. Credit cards give better consumer protection, less hassle if your card gets cloned, and (if used sensibly) help your credit rating.
- naravara 8y ago>With the rise of smartphone payments like Samsung Pay, Android Pay and Apple Pay , is there even a need for credit cards? If you ever travelled to Asia and don't wanted to install WeChat then yes, cards are good unless you're ok with going cash only.
- bubblethink 8y ago>is there even a need for credit cards? Yes, I don't care for running any of these blobs or other DRM garbage on my phone. And what's the selling point ? I don't see the difference between pulling out my card v/s pulling out my phone. Decent security (chip & pin for eg. or other 2nd factor) is perfectly possible with cards. US is just backwards in matters like these. We don't need to beat the security strawman.
- jonknee 8y agoSamsung Pay, Android Pay and Apple Pay all are primarily just a different way to use a credit card. They're competing against the physical way cards are processed, not the cards.
- legulere 8y agoIn a lot of places all around the world credit cards always played a minor role. Usually the lack of credit cards in Germany is attributed to being a cash-only country, but I guess it has more to do with wire transfers and direct debit being basically for free. For shopping physically there's also additionally a national direct debit system (called girocard), organized directly by the banks with much lower fees than credit cards.
- ghobs91 8y agoThe underlying network that's processing those payments still largely involves Visa, Mastercard, Discover, and Amex. For Apple Pay to entirely replace them, they'd need to convince millions of merchants to get credit card terminals that use them.
- reaperducer 8y agoLast fall I found myself in a remote part of the country and realized I'd forgotten the check card I planned to use while there. Fortunately, most retail on the Navajo Nation takes Apple Pay, so I just drove over there every couple of days for supplies and paid with my Apple Watch. Saved my bacon. But I'd still rather have plastic as a backup considering battery issues in places with extreme weather.
- repler 8y agoYou can actually do it now if you have a bank account on each end of the transaction, and it's in real time (not ACH): https://www.theclearinghouse.org/payment-systems/rtp https://www.theclearinghouse.org/payment-systems/rtp
- delfinom 8y agoBecause at the end of the day, credit cards are loans and more than just transactions. Way more bank related integration work than just charging money.