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 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