Why are 'big' banks promoting Apple-Pay?

[JFKvsNixon]

I presume you mean with a finger print locked phone?....Otherwise that's a recipe for disaster.

 

Yes, here's a video explaining it.

 

---------- Post added 01-12-2015 at 10:37 ----------

 

I still don't think that will save me any time over a contactless card. In both cases I'm getting something out of my pocket, with the card I'm picking it out of the wallet and with the phone I'm pressing and holding buttons. I can't see the advantage unless and until I no longer need to carry a wallet, and we're not there yet by a long shot.

 

That's fine if you don't think it'll be faster for you, it certainly is more convenient for me.

[tzijlstra]

Apple wants data, Apple Pay is a brilliant way of linking people to spending patterns. Brilliant data for any big-data company (which is what Apple is in essence).

[PeteMorris]

If the transaction is above the floor limit then you will need a connection to the banking system. That's provided by the PoS terminal though, regardless of if it's a chip, contactless or NFC. The real beauty of NFC is the increased processing power and much increased security that gives you hence the floor limit can be raised.

 

Sorry...I'm still a bit wooly on this....So your phone will need a connection to wifi? or 3/4g? But this will be provided by the terminal in the shop?

 

---------- Post added 01-12-2015 at 10:54 ----------

 

Apple wants data, Apple Pay is a brilliant way of linking people to spending patterns. Brilliant data for any big-data company (which is what Apple is in essence).

 

I have to admit...that's what bothers me somewhat too.

[Waldo]

For Apple?

 

It's a USP, something that there phones could do first and which increases the utility of the phone.

 

...which leads to more people buying Apple hardware. It's the same root reason why some apps only appear on iOS (when they could easily be developed for Android too). Apple is more likely to feature (promote on the iOS app store) a good quality app that is iOS only, because people wanting that app, will need Apple hardware to use it.

[PeteMorris]

So what's in it for the banks?...Purely that people spend money?

[JFKvsNixon]

I have to admit...that's what bothers me somewhat too.

 

Why? All that's happening is the Apple is getting the data that you more than happy to give to someone else.

[PeteMorris]

Why? All that's happening is the Apple is getting the data that you more than happy to give to someone else.

 

How do I give it others?...I don't get spam emails from Visa...Or my bank..But you can bet using Apple, there's an angle.

[Obelix]

How do I give it others?...I don't get spam emails from Visa...Or my bank..But you can bet using Apple, there's an angle.

 

Every time you spend money you are giving that information to at least three and perhaps five distinct different organisations.

[PeteMorris]

Every time you spend money you are giving that information to at least three and perhaps five distinct different organisations.

 

Yes, I can see the shop itself getting the information...and the card provider, and the bank...But surely it's what they do with that information that counts.

 

Will Apple be using it for 'helpful' targeted advertising? My bank doesn't, and neither does my card provider, or for that matter do the shops I spend my money in.

[L00b]

The real beauty of NFC is the increased processing power and much increased security that gives you hence the floor limit can be raised.

Together with, at term, the opportunity to significantly simplify the PoS design and, potentially, do away with 'PoS' (within the conventional meaning of the term/acronym) altogether.

 

It's far from inconceivable that retail items could, eventually, simply bear a printed QR code or the like on the tag or packaging, which a customer simply scans instore with their smartphone to both check price (if not displayed - all manner of database design and interlinking in the background could tell the 'system' that you are buying item X in store Y at place Z so the item price in that store is £) and then effect payment over the network (mobile or instore WiFi), leaving a retail space to focus on shoplifting security.

 

EDIT

So what's in it for the banks?...Purely that people spend money?

It increases transactional security, reduces infrastructural and processing requirements (pushed onto customers equipment), mitigates card scheme influence/their-way-or-the-highway, and builds still more customer pattern data quasi-automatically. Win all-round for banks. Told you already, now be said Edited December 1, 2015 by L00b