Apple to reportedly net 15 cents for every $100 Apple Pay transaction
Details of Apple's upcoming Apple Pay mobile payments system are starting to emerge, with a report on Friday claiming the company will garner 15 cents on a $100 purchase, more than Google managed for its Google Wallet initiative.
According to sources familiar with Apple's banking and credit card arrangements, Cupertino will get a 0.15 percent cut of every Apple Pay transaction conducted over NFC, the Financial Times reports.
The new information adds to a previous report that noted Apple will collect fees from banks for customer purchases. What those fees were, exactly, was unknown at the time.
In an in-depth overview of Apple Pay published yesterday, it was reported that Apple's banking and credit card network partners are willing to offer lower per-transaction fees thanks in large part to the technology's integration. For example, despite being a "no card present" touch-less solution, Apple Pay will be charged at rates below even "card present" tiers, a major discount competing wireless payment makers were unable to secure.
Part of the reasoning behind the move is that Apple's system does not infringe on traditional credit card payments networks, unlike some other programs backed by major retailers. In lieu of higher transaction fees, banks are supposedly looking to make up the difference through sheer volume driven by — hopefully rapid — Apple Pay adoption. Instead of paying with cash, consumers may switch to Apple's system.
Further, Apple's payments solution is tokenized, meaning card numbers and other sensitive information is replaced with generated codes. The system is thought to be more secure than swip-to-pay methods.
Apple Pay will be available on iPhone 6 and iPhone 6 Plus handsets, as well as the upcoming Apple Watch.