Banks are increasingly dissatisfied with Apple Pay; know more

In 2014, Apple has entered into partnerships with several banks and brands to make Apple Pay available to customers for as many customers as possible. seven years later, a report from The Wall Street Journal (WSJ) showed that the relationship between the Apple and American banks are starting to fray.

In short, institutions such as JPMorgan Chase, Capital One and Bank of America are increasingly unhappy with the fees and costs associated with transactions made via Apple Pay. This is particularly true after the introduction of the Apple Card in 2019. See below for details.

Taxas do Apple Card

Currently, Apple’s partner banks pay a fee to the company whenever their cards are used to make an Apple Pay transaction. It changes by country, and card issuer. However, in the United States, it is estimated to be around 0.15% for a credit card transaction and 0.5 cents for each credit card transaction.

According to the WSJ, banks are now battling fees, seeking to reduce the amount paid to Apple per transaction. Recently, they reportedly asked Visa to change the way it handles certain transactions with Apple Pay.

The changes are still under discussion and could be implemented in 2020. However, in their current state, they would only apply to those transactions made automatically. That is, Apple would earn the 1st purchase fee only, in the case of recurring transactions. Such as subscription services, gym plans, among others. However, Apple executives have already told Visa that they are opposed to the change.

In addition, the article cites some dynamics of the agreements signed by Apple with Visa and Mastercard. Such as Apple’s acceptance of not returning its own branded cards. In other words, that’s probably why Apple teamed up with Mastercard to launch its card.

The WSJ also claims that some US bank executives were angered when Apple teamed up with Goldman Sachs to launch the Apple Card. Some banks and card networks have also been disappointed by the adoption of Apple Pay since its introduction.

Benefits to Apple

In addition, the negotiations between Apple, Visa and Mastercard provide the apple brand with some benefits. Such as the chance to choose which card issuers could be on Apple Pay, as well as your specific cards.

In short, both require that all card issuers be accepted in dealings with other payment processors. In a statement, Apple cites that:

“Banking partners continue to see the benefits of providing Apple Pay and invest in new ways to implement and promote the service to their customers for secure and private purchases in stores and online.”

With information, MacMagazine.

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