Why are 'big' banks promoting Apple-Pay?

[PeteMorris]

I've been intrigued for a while now, as to why most of the big banks on the high street seem to be promoting Apple-Pay.

 

Surely it detracts from their own payment methods?

 

I tried googling it, but didn't come up with anything that made much sense. At least not to me. I'm sure someone on here can make a logical argument for or against such a move.

[Berberis]

Because they know Apple will pour so much money into the service that it WILL eventually become one of if not the top NFC method. Its also probably more secure than the droid equivalents due to the locked down iOS security.

[Cyclone]

I've been intrigued for a while now, as to why most of the big banks on the high street seem to be promoting Apple-Pay.

 

Surely it detracts from their own payment methods?

 

I tried googling it, but didn't come up with anything that made much sense. At least not to me. I'm sure someone on here can make a logical argument for or against such a move.

 

It allows high value contactless transactions, banks don't really care, but retailers want it because contactless is quicker.

And even for low value transactions, if customers want it and/or find it convenient, then retailers want it so that they don't fall behind the competition.

 

---------- Post added 01-12-2015 at 09:37 ----------

 

Because they know Apple will pour so much money into the service that it WILL eventually become one of if not the top NFC method. Its also probably more secure than the droid equivalents due to the locked down iOS security.

 

The security requirements are the same for both (and they're accredited by outside companies). Apple have a less fragmented market though and have got to market first.

[PeteMorris]

Because they know Apple will pour so much money into the service that it WILL eventually become one of if not the top NFC method. Its also probably more secure than the droid equivalents due to the locked down iOS security.

 

So do you think it's a sort of backhand admission that the bank's own security isn't 'that' good?

 

For me personally, and although I've got an iPhone and an iPad, I'm reluctant to go down this road. Do Apple actually want world domination in everything?...Plus they must be getting a slice of the revenue, that the banks would normally take, which probably in turn means it's going to cost 'us' more to use the service.

[Cyclone]

It doesn't cost anymore and Apple won't make anything from it.

[PeteMorris]

It doesn't cost anymore and Apple won't make anything from it.

 

Really?...Silly question then...What's the point?

[JFKvsNixon]

So do you think it's a sort of backhand admission that the bank's own security isn't 'that' good?

 

For me personally, and although I've got an iPhone and an iPad, I'm reluctant to go down this road. Do Apple actually want world domination in everything?...Plus they must be getting a slice of the revenue, that the banks would normally take, which probably in turn means it's going to cost 'us' more to use the service.

 

Apple are doing it as they want to offer more convince to their users. Not having to dig into your wallet when you want to pay for something is more convenient.

[L00b]

I've been intrigued for a while now, as to why most of the big banks on the high street seem to be promoting Apple-Pay.

 

Surely it detracts from their own payment methods?

Banks don't have their own consumer/retail electronic payment methods (other then BACS and bank transfers), these are still administered mostly by card schemes (VISA, MasterCard, AMEX, etc.) and card scheme fees (processing, fraud, replacement cards, etc.) are loud.

 

Apple Pay is one way of reducing these fees, and accessorily the (non-trivial) influence of card schemes in the electronic payment industry, particularly in respect of card fraud (since customers using Apple Pay don't need to carry their cards, which therefore don't get lost/misused/etc.)

 

There is also a whole host of hardware-/system-related (and again, non-trivial) cost savings associated with doing away with physical payment cards over time.

 

You also have to look at the long view, which I'm fairly confident banks are doing: physical payment cards will eventually become redundant (e.g. Apple Pay could eventually be made to work on the basis of your bank account details alone, without any payment card involved at all) and, when that happens, so will the card schemes (no more VISA, MasterCard, AMEX, etc.)

Edited December 1, 2015 by L00b

[PeteMorris]

Apple are doing it as they want to offer more convince to their users. Not having to dig into your wallet when you want to pay for something is more convenient.

 

But what about the current contactless payment system?...I'm not actually overkeen on displaying my rather expensive iPhone in public...It makes an easy target. Let's face it, it's no more difficult to get your contactless payment card out, than it is to 'faff' about with your phone...

[JFKvsNixon]

But what about the current contactless payment system?...I'm not actually overkeen on displaying my rather expensive iPhone in public...It makes an easy target. Let's face it, it's no more difficult to get your contactless payment card out, than it is to 'faff' about with your phone...

 

You need to dig into your wallet to get your card to pay via contactless, so it's more convenient than that. Most people don't have a problem using their phone in public. It's one of the points of having a mobile phone that you're willing to use it out of the house, so for them that's not an issue.