Apple Pay may mean the end of physical bank cards within 2-3 years, argues Moven CEO

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While we’d all expected plastic bank cards to be replaced by apps eventually, the CEO of mobile banking startup Moven is suggesting that Apple’s backing could mean the end of physical bank cards within 2-3 years.

The additional sweetners here are three fold. Firstly, tokenization will avoid much of the type of breaches we’ve seen at Target and Home Depot because the token is only a one-time use thing. Secondly, the move to tokens and the combination of biometrics, etc allow for the emergence of a ‘cardholder present’ approach to interchange rates that will potentially give mobile payments a competitive merchant rate. Lastly, the US might effectively jump straight from magstripe to mobile, especially if issuers can figure out how to reduce the cost of card replacement by moving straight to mobile SE and tokens …

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Discover cards joining Amex, Mastercard and Visa in Apple Pay contactless payments

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Discover has tweeted that its cards will be joining Amex, Mastercard and Visa in the Apple Pay service, allowing electronic versions of its cards to be stored in Passbook for contactless payment using the iPhone 6 and Apple Watch.

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Apple demonstrates just how quick & easy Apple Pay is to use [Video]

After launching its new mobile wallet service Apple Pay during yesterday’s keynote, the company gave demos afterwards, TechCrunch sharing a video.

The card you have registered with your Apple ID becomes your default card, but you can add others by using the camera on the iPhone 6 to identify it. The iPhone requests permission from your bank, and the card is then added to Passbook …  Read more

Apple reportedly negotiated transaction fee discounts w/ major banks ahead of mobile payment system

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Financial site Bank Innovation reports that Apple has negotiated lower transaction fees with American Express, Bank of America, Capital One, Citigroup, and JP Morgan Chase ahead of the debut of its mobile payment system expected to be announced alongside the new iPhone models next week. The report notes that the banks were likely willing to lower rates to ensure participation and due to Apple’s security measures including the iPhone’s Touch ID sensor.

The first thing Apple has done is convince these four FIs to consider transactions from Apple’s upcoming payments venture — said to launch with its forthcoming iPhone 6 introduction — as “card present” transactions, which carry a lower discount rate than “card not present” transactions, because of lower fraud risk.

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Apple reportedly discussing mobile payment partnership with Nordstrom

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Apple is reportedly in talks with department store Nordstrom to join as a partner for the company’s mobile payment system, as noted by Bank Innovation. As has been previously reportedly, Apple is also in talks with several other retailers about the possibility of accepting iPhone-based payments, and has deals in place with MasterCard and American Express as well as Chinese payment processor UnionPay to support the feature.

According to the Bank Innovations report, people familiar with Nordstrom’s systems have confirmed that the company’s current point-of-sale hardware is purchased from Apple and recently received a software update to work “with the latest iPhones.” These devices are said to be the same updated EasyPay systems implemented recently in Apple Stores across the country.

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Apple hiring developers for next gen payment platform to help retail ‘enter new markets’

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Apple today posted a job listing on its website looking for a Payments Software Engineer that will “help build a next generation payment platform.” Apple says the payment system will consist of integration of payment devices, middleware and acquirers that will “push the boundaries in new markets for Apple Retail.” Read more

Mastercard/Paypass to be NFC partner with Apple on iPhone 5?

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We had some time to talk to a well-connected developer at Macworld who was building an app that— among other capabilities— includes NFC reading for the purpose of mobile transactions.  We were obviously curious why they would do that, noting that third party NFC readers for iPhone were not popular (aside from the recently announced Moneto, above).  The developer told us that he had no hardware knowledge, but he had spoken to Apple iOS engineers on multiple occasions, and they are “heavy into NFC.”

I asked how confident he was, and he said, “Enough to bet the app development on.”

This is not the first we have heard that iPhone 5 would have NFC, however.  Besides the deluge of ideas Apple has patented with NFC, the New York Times said pre-iPhone 4S that an upcoming iPhone would have NFC.  While it did not turn out to be the iPhone 4S, it could be the one coming up.

(Moneto again)

The question is now: Who will Apple partner with for its payment systems?  Over the weekend we received some hints… Read more