Apple Pay & Chip & Pin

[Sanlmar]

I almost never make investments in a stock. I hold nothing long term.

If you like money - read on.

Apple Pay looks to me like something that will be a hit, particularly
with the younger Millenials. Not that it is a great new solution or
adds a whole lot of value. I think it will be fashionable to use it.

This will drive iPhone sales and the whole Apple ecosystem. Maybe more importantly, Apple will
make huge bank skimming a small cut of every credit card transaction
fee.

Steve Jobs would love this.

My thought is go long AAPL and short bitcoin. One is far different than
the other, I know. My thought is both methods of payment appeal to the
same demographic. Both are fashion & fad.

Anyway, as I dug in I wondered about so-called EMV, so called chip & pin
credit card, use in the rest of the world and wether that would be
comparable with Apple Pay. Answer is yes.

However, a good percentage of US card readers lack the NFC to work with Apple
Pay.

What I did discover was that chip & pin credit cards & readers are
coming soon to the US.

Every credit card in the U.S. will be replaced by October 2015 with new
cards that contain the chip-and-PIN technology that the rest of the
world has had for years, according to the Wall Street Journal.

Both Visa and Mastercard have set a deadline of October 2015 for the
transition to EMV credit cards to take place.

Part of the October 2015 deadline is what’s known as the ‘liability
shift". When the liability shift happens, what will change is that if
there is an incidence of card fraud, whichever party has the lesser
technology will bear the liability..

So if a merchant is still using the old system, they can still run a
transaction with a swipe and a signature. But they will be liable for
any fraudulent transactions if the customer has a chip card. And the
same goes the other way – if the merchant has a new terminal, but the
bank hasn’t issued a chip and PIN card to the customer, the bank would
be liable.

So if merchants don't upgrade their terminals the fraud is on them.

Including NFC when upgrading to EMV/chip & pin terminals will be a
nominal cost. It's a done deal.

[Sanlmar]

Apple has negotiated lower credit card transaction fees with several
credit card issuers. American Express, JP Morgan Chase, Citigroup,
Capital One, and Bank of America.

Credit present vs card not present was an interesting review.

The banks have agreed to allow all of Apple's transactions to be
conducted as "card present," a set fee charged when a customer uses a
card in a physical retail location.

Typically, there's also a higher "card not present" fee that's charged
when a card is used online, due to security issues. Apple's also
managed to secure a lower "card present" fee on top of that, cutting
its costs further.

Normal "card present" discount rates, which are shared by issuers and
networks but determined by the network, are about 1.5%, which means
that Apple appears as though it will get around a 10% discount on the
processing rate it will pay.

Money in Apple's pocket.

Apple needs to replace the dying iTunes money. Skimming any portion of
the world's credit card transactions is gold.

[SrslySirius]

A bunch of major retailers have decided to disable NFC readers (which affect Apple Pay) in favor of their own proprietary systems.

http://www.theverge.com/2014/10/25/7...-out-apple-pay

I don't know who's going to come out on top, but there's a war brewing over mobile payment and it won't be pretty.

[Krypt]

I almost never make investments in a stock. I hold nothing long term.

If you like money - read on.

[bukowski72]

I pay has 2 major things going against. A lot of retailers have been working on/paying for the devlopement of a system close to Ipay that they want to stick with.

Also most retailers have to purchase additional equipment to use Ipay which costs money and is a hassle. If Ipay could eliminate this equipement problem I think they would be a lot stronger.

[Sanlmar]

A bunch of major retailers have decided to disable NFC readers (which affect Apple Pay) in favor of their own proprietary systems.

http://www.theverge.com/2014/10/25/7...-out-apple-pay

I don't know who's going to come out on top, but there's a war brewing over mobile payment and it won't be pretty.

The CurrentC app will be free to consumers and available through Apple's App Store. Lol

I see CurrentC uses QR codes vs NFC

This looks like a mess. Guess I gotta read more.

[Sanlmar]

I pay has 2 major things going against. A lot of retailers have been working on/paying for the devlopement of a system close to Ipay that they want to stick with.

Also most retailers have to purchase additional equipment to use Ipay which costs money and is a hassle. If Ipay could eliminate this equipement problem I think they would be a lot stronger.

This shift to chip and pin credit cards will require merchants to upgrade or be on the hook for the fraud charges

[fluffer]

http://bgr.com/2014/10/27/iphone-6-nfc-chip/

[Sanlmar]

With Apple Pay no card information is shared with merchant. Which pretty much explains why Wal-Mart et al. don't like it.

The retailers don't want Apple to monopolize a system that will produce a lot of valuable customer data. Their system, "CurrentC," funnels a ton of data to retailers. And it has about 60 companies on board.

One advantage of CurrentC is that it automatically applies discounts and coupons to your purchase, the masses can be bribed to surrender their data.

Google Wallet, and the greatest data miner of them all Google, is all about harvesting your financial data & spending habits and selling it.

You'll be walking down the street and info sold by CurrentC or Google will see you are near Walmart and send you a coupon for Van de Camp pork & beans cause you have bought them before.

Fuck that. This is all that FaceBook, Linkdin, Google personal data harvesting that I refuse to expose myself to. I don't want my personal info bought, sold and shared.

Data privacy. Apple could dust off the George Orwell theme featured during the 1984 Super Bowl. I still think middle America is clueless about data privacy.

But here's where my bet regarding Millenials' Apple Pay usage goes off the rails. Kids don't give a shit about their privacy. For most it's way too late anyway.

Millenials simply would not see privacy as an advantage as long as they get a coupon for a free appetizer at Ruby Tuesday.

Druff, how bad you want that free app? I have never seen you comment on data privacy.

[PLOL]

Buddy, I happen to love Ruby Tuesdays. And if you don't like it, then you don't have to eat there.