There is a pretty big security reason $8.6b a year in the US:
http://searchfinancialsecurity.tech...aud-costs-86-billion-per-year-Aite-Group-says
Apple Pay
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http://searchfinancialsecurity.tech...aud-costs-86-billion-per-year-Aite-Group-says
Onthebottom, you're mixing up a few things here in the US vs Canadian market.
US adoption will depend on the retailers rolling out the NFC terminals. That will also push chip and pin adoption, along with the Paypass/Paywave technology.
Apple is using a new security standard that Visa and Mastercard are pushing - tokenization will make the wallets more secure. This makes is easier to use a virtual card technology. The fingerprint is nice on top of that, but not really the big change here; the change is the push to roll out NFC and tokenization, which can be used by all.
Google wallet never tried to use NFC, nor offered it in Canada. They will likely switch to tokenization; some key android phones already have the NFC and secure element technologies (that's how they work in mobile wallets in Canada.) it will be interesting to see what Google does, as it looks like tokenization might give them less insight into card usage versus their current wallet.
I think the hurdle for Canada will be getting tokenization rolled out by Visa/MC and the banks. The Canadian wallets will adopt this when it comes. The retailers and banks in Canada are ahead of the US on this; they implemented wallets on earlier standards, but can adapt. Ie Rogers, RBC, TD, CIBC, etc.
I imagine the banks (the card issuers) will go along with this in Canada as long as Apple opens up the iphone enough so they can run their wallets on it too.
Competition on wallets will be great, but they need to settle on NFC and tokenization first to enable this.
US adoption will depend on the retailers rolling out the NFC terminals. That will also push chip and pin adoption, along with the Paypass/Paywave technology.
Apple is using a new security standard that Visa and Mastercard are pushing - tokenization will make the wallets more secure. This makes is easier to use a virtual card technology. The fingerprint is nice on top of that, but not really the big change here; the change is the push to roll out NFC and tokenization, which can be used by all.
Google wallet never tried to use NFC, nor offered it in Canada. They will likely switch to tokenization; some key android phones already have the NFC and secure element technologies (that's how they work in mobile wallets in Canada.) it will be interesting to see what Google does, as it looks like tokenization might give them less insight into card usage versus their current wallet.
I think the hurdle for Canada will be getting tokenization rolled out by Visa/MC and the banks. The Canadian wallets will adopt this when it comes. The retailers and banks in Canada are ahead of the US on this; they implemented wallets on earlier standards, but can adapt. Ie Rogers, RBC, TD, CIBC, etc.
I imagine the banks (the card issuers) will go along with this in Canada as long as Apple opens up the iphone enough so they can run their wallets on it too.
Competition on wallets will be great, but they need to settle on NFC and tokenization first to enable this.
Yes, that's what's behind the masked cc numbers and the retailer having your cc number, good article here:
http://www.zdnet.com/apple-pay-and-...the-tool-that-curbs-data-breaches-7000033585/
That's like saying Google knows enough about you, don't use their products.... But it's not about their position, it's about your preferences.
On it's own, no, that's why there are so few of those transactions today..... you need agreements among the card systems, issuers, banks.... and you need some sort of wallet app.
So I guess the question is, will the "Apple app" work on android and BlackBerrys or solely on iPhone 6 users or 4 & 5's in conjunction with the Apple Watch?
I would guess it will only work on the Apple 6 series phones because the deal they've struck with Card processors and Banks is dependent on the finger print identification and the secure element. The play for Visa/MC/Amex and the Banks is lower fraud costs, that's what they gave Apple a 15bp pricing spread.
I could see them expanding the Apple Pay online service to 5s as it has the finger print authentication and the secure element - but Apple is very deliberate in rolling out changes - first it was passbook, then the finger print authentication, now a payment service and NFC. Reports are that initially Apple will not expose the NFC capabilities to apps developers (like they did with finger print on the 5s), perhaps like the finger print on the 5s they will provide this later.
If Apple doesn't expose the NFC capabilities to apps developers for use on Android, then I can't imagine it being successful with only iPhone 6 users making purchases.
I guess it depends on what you mean by being successful. They do have 800m credit cards on file, so people are accustomed to doing business when them, while there are more android devices (many with NFC) they have resulted in very little "success" on mobile smartphone payments, and with fewer users Apple customers do spend more from their mobile devices....
Think iPod/iTunes release - why would people buy music when they could steal it, why get locked into a $500 MP3 player... yet it revolutionized the music industry and is the largest music retailer (all without supporting other MP3 players).
What % of Android users do you think can't be swayed to the Apple iPhone 6? What % of top spenders?
The top two income categories are where the spend is I would think:
It's no news that rich can afford more iPhones than android. However I suspect most of them have iPhones as status symbols or try to fit in crowd. It would be more interesting to see iPhone vs android ownership among the tech savvy, it professionals etc.I guess it depends on what you mean by being successful. They do have 800m credit cards on file, so people are accustomed to doing business when them, while there are more android devices (many with NFC) they have resulted in very little "success" on mobile smartphone payments, and with fewer users Apple customers do spend more from their mobile devices....
Think iPod/iTunes release - why would people buy music when they could steal it, why get locked into a $500 MP3 player... yet it revolutionized the music industry and is the largest music retailer (all without supporting other MP3 players).
What % of Android users do you think can't be swayed to the Apple iPhone 6? What % of top spenders?
The top two income categories are where the spend is I would think:
I know many people will purchase new iPhones, but I have a hard time believing people will ditch their Androids in favour of the iPhone 6 for the sole purpose of making NFC payments.
Although NFC may be slightly more convenient than cash, debit or credit many people like myself will likely just continue as we have done for years. The way I look at it, unless there's an app for the cards I need with me at all times, driver's licence, OHIP card, Costco membership etc. it's not a big deal to add a debit and credit card to my wallet.
The other thing to keep in mind is that unless every retailer is going to accept NFC payments, you're not going to be able to rely on your iPhone 6 to make purchased and will still have to carry cash, debit or credit.
I'll repeat, people are mixing things up here a bit. What Visa and MC get out of this is a push for US retailers to adopt the EMV style terminals, which helps drive chip and pin physical card adoption (ie paypass and paywave transactions) as well as cellphone wallets like Apple's. They are very motivated to reduce dependency on the magstripe.
If the cards companies cut a price deal with Apple in the US, this is their likely motivation - getting the physical terminals standardized on EMV and replaced is tough, and is the biggest impediment to wallets in the US.
Canada is way ahead on this EMV adoption, and already has a number of wallets on a standardized NFC technology. If people want to ditch their cards and use a cell phone, it is easy, as long as they are not using Apple. For many, carrying the physical card is still the way to go. Apple will need your to work a deal with the Canadian banks if they want to offer it in Canada. They will want access to use the apple NFC chip in return, I'm sure.
If the cards companies cut a price deal with Apple in the US, this is their likely motivation - getting the physical terminals standardized on EMV and replaced is tough, and is the biggest impediment to wallets in the US.
Canada is way ahead on this EMV adoption, and already has a number of wallets on a standardized NFC technology. If people want to ditch their cards and use a cell phone, it is easy, as long as they are not using Apple. For many, carrying the physical card is still the way to go. Apple will need your to work a deal with the Canadian banks if they want to offer it in Canada. They will want access to use the apple NFC chip in return, I'm sure.
Not really, I'm sure nerds are Android fans, if your looking for users of a payments service I'm not sure that's the audience you want.
Given Android marketshare, not all those users are nerds and IT professionals....
Apple's timing on NFC isn't random:
The hidden brilliance behind the timing of Apple’s adoption of NFC
As of October 2015, any merchants that do not support EMV credit cards – smart cards with integrated circuits that enable point of sale authentication and help prevent fraud – will be liable for the fraudulent use of counterfeit, lost, and stolen cards. EVM cards are read at the point of sale by inserting the end of the card featuring the chip into a payment terminal, rather than swiping the familiar magnetic stripe on the back of the card. Consumers then enter a PIN to authorize the transaction. (If you’ve traveled internationally, you’re likely familiar with this system).
These EMV cards and the resulting transactions are far more difficult to counterfeit than what Americans consider “standard” credit cards. While EMV is the norm around the world, only about 14 percent of US merchants support this technology today and very few consumers own credit cards incorporating these chips.
It's a matter of religious belief to call it brilliant, versus caving. I believe the brilliant move is on the card companies to convince Apple to use EMV-style standards, and drive more EMV adoption. People who have been saying NFC is dead or failed are now changing their tune rapidly, which is fucking hilarious.
It has failed, that's simply a fact.
How hard was it to put an NFC chip in a phone (not hard or expensive), Apple simply did it when it could make use of it.... that's not so much caving as having a plan - which is unique in the smartphone business apparently.
Definitely. I've seen this a number of time.
Love this type of post. Everything at a glance.
Find it interesting that ownership is almost identical right across income range for android.
Same with education while iOS users are more skewed to the educated.... 9% advantage among college grads, -14% for less than highschool when compared to Android.
