It’s no surprise that the three major card companies in the US have been taking advantage of being the first with Apple Pay out the door and that the majority of their latest ads and promotions have centered around the new payment service. The latest comes from American Express with a just released ad focusing on highlighting Apple Pay as “The Next Evolution of Membership.”
Last month Apple rolled out support for dozens of banks and credit unions with Apple Pay bringing the count to more than 45 institutions, and today Apple is out with the first wave of the month adding more than a dozen new banks to its list of supported Apple Pay banks bringing the total count to over 60 institutions. Here are the new banks listed as supporting Apple Pay as of today: Expand Expanding Close
Apple is preparing to expand its new Apple Pay payments service internationally with at least the Canadian launch currently scheduled for early 2015, according to sources close to the situation. Expand Expanding Close
Staples shared in an announcement today that it is now accepting Apple Pay transactions at its “over 1,200 stores” in the United States for iPhone 6 and iPhone 6 Plus users. Apple Pay, of course, will also be available for iPhone 5, iPhone 5c, and iPhone 5s users starting next year when paired with the upcoming Apple Watch. Apple included Staples in its list of retail partners when announcing its secure mobile payment service, although Apple noted that support would be “coming later this year” from the retailer as it was available in time for last month’s launch. Expand Expanding Close
Starwood Hotels has officially launched its SPG Keyless service, allowing guests to use their iPhone (and, in the Spring, Apple Watch) to unlock their hotel doors, bypassing the front desk. The boutique hotel group first announced the project back in January.
1. After booking a reservation at a keyless hotel, SPG members are invited to opt-in to SPG Keyless and register their phone through the SPG App.
2. Approximately 24 hours before arrival, the guest receives his/her room number and Bluetooth key via the app.
3. Upon arrival at the hotel, the guest can completely bypass the front desk (where available) and go directly to his/her room.
4. Then, after ensuring his/her Bluetooth is enabled, the guest simply opens the SPG App, taps the smartphone on the door lock, waits for the green light and enters the room.
The service goes live today at three Starwood brands: Aloft, Element and The W. Expand Expanding Close
Earlier this week, retailers CVS and Rite Aid blocked NFC payments at their stores following the launch of Apple Pay because of their existing commitment to MCX’s CurrentC platform. Nevertheless, MCX CEO Dekkers Davidson assures that merchants accepting both CurrentC and Apple Pay “could be entirely possible” in the future.
The blockade has ignited somewhat of a controversy between Apple Pay and MCX, only worsened by the fact that it was confirmed that CurrentC suffered a security breach earlier this morning. MCX, or Merchant Customer Exchange, consists of a number of high-profile retailers that grouped together to work on their own CurrentC contactless payments platform. Expand Expanding Close
MCX, the retailer consortium behind the CurrentC mobile payment system, has responded to the controversy over its members being required to block Apple Pay or face fines with some unconvincing ‘assurances.’
The first sign of trouble between MCX and Apple Pay was when CVS disabled NFC functionality from its payment terminals. When Rite Aid joined in, consumers responded by threatening to boycott MCX members.
In a blog post which MCX says is designed to “set the record straight,” it appears to do anything but … Expand Expanding Close
If you’ve ever made a contactless credit card payment in a retail store, you’ve likely run into a VeriFone NFC-terminal: recent estimates put it at approximately 60% global market share for EMV payment terminals, for example. Today, the company is launching a new campaign along with payment processing company Vantiv that encourages Verifone’s massive network of clients to upgrade their terminals and get ready for Apple Pay: Expand Expanding Close
The Information is reporting that Apple is actively scouting out partnerships to increase the utility of the NFC chip inside the iPhone 6 and iPhone 6 Plus. Right now, the chip can only be used for payments through Apple Pay as the API is not available to third-party developers.
The Information says that the company is talking to potential partners about using the technology for things like building security, public transit tickets and more. The report names that Apple has already been in talks with HID Global and Cubic, who make electronic ‘keycard’ secure building access and transit fare systems.
The Apple representatives have talked to technology providers like HID Global and Cubic, which enable secure access to buildings and transit fare systems, respectively, said people briefed on the discussions. Spokespeople for the companies declined to comment about any discussions with Apple, but executives there discussed how they could integrate their systems with the iPhone.
In fact, Apple has already announced a similar partnership with Starwood Hotels, where Apple users can replace hotel keycards with their Apple Watch, although this uses Bluetooth rather than NFC technology.
Teardowns of Apple’s new iPad Air 2 revealed an NFC chip that wasn’t officially announced by Apple, but sources close to the situation have confirmed it’s only being used as a Secure Element for Apple Pay in-app purchases.
A fix for a bug in Apple Pay that causes credit cards from Chase and others to not display the correct physical card design is being worked on, according to sources close to the situation. Expand Expanding Close
Following yesterday’s launch of Apple Pay through participating card issuers, banks and retailers in the US, some users have discovered that the payment service is also already being accepted through some retailers abroad. 9to5Mac readers report using Apple Pay loaded with a US-based credit card at retailers in Australia and Canada… Expand Expanding Close
With today’s launch of Apple Pay alongside iOS 8.1, iPhone 6 and iPhone 6 Plus owners can now use their phones to pay for goods using NFC & Touch ID. Apple states that over 220,000 stores are accepting Apple Pay, but finding nearby merchants can be a bit difficult without referring back to our running list 24/7.
As it turns out, the MasterCard Nearby app has a map view of merchants with Contactless (read: NFC-compatible) POS systems where you can use Apple Pay. Restaurants, entertainment locations, gas stations, and other types of businesses are listed out in the app.
In a WSJ interview, Eddy Cue stated “there’s a lot to do here” regarding Apple Pay, but with the technology already working with the open NFC technology rather than depending on merchants to sign a deal with Apple, the current number of businesses with compatible POS systems is promising.
Apple has released iOS 8.1 and with that, we have Apple Pay support. This is Apple’s new mobile payment platform that takes advantage of the NFC capabilities of iPhone 6 and iPhone 6 Plus. This will allow you to make purchases in stores that support Apple Pay using supported cards from a growing list of banks. Setting up Apple Pay is very simple and we’ve put together a quick tutorial to walk you through the process…
On the day that Apple Pay goes live, SVP Eddy Cue has told the WSJ that the company “has a lot of work to do” on the service, suggesting that initial take-up may be slow – with in-app purchases making up the largest share of transactions in the short-term.
We’re trying to do something that I think is a game changer and it requires a lot of people to play together. There’s a lot to do here and we have a lot of work to do, but it should be huge.
Although the list of retailers who have committed to Apple Pay looks impressive, it is far from comprehensive, with some big names missing – including the largest retailer in the US, Wal-Mart … Expand Expanding Close
An internal memo sent to Panera Bread employees and acquired by 9to5Mac has revealed that Apple will launch its mobile payment platform on Monday, October 20th. Panera Bread was listed as one of the initial launch partners for Apple Pay during its introduction last month.
An online training course for employees has been published that includes instructions for the VeriFone readers, including the Apple Pay functions. Stores that don’t have the appropriate hardware to support the technology will receive further information on the 20th about how the company plans to handle payments those locations. Expand Expanding Close
The launch of Apple Pay, Apple’s NFC and Touch ID-based mobile payment solution, is upon us. Apple has begun preparing for the launch by kicking off Apple Pay training programs for its own group of retail store employees and by working with retailers to prepare for the debut later this month. The training materials, shared by a reliable source, for the Apple Pay launch at Apple retail stores have also detailed some new specifics regarding the Apple Pay setup and transaction processes both on customer iPhones and in Apple retail stores…
Starting with iOS 5 in 2011, Apple has released a major new iOS version each fall and a notable follow-up update early in the following year. For example, iOS 6 launched in September 2012 and was updated to iOS 6.1 in January, and iOS 7, which was launched in September 2013, was updated to iOS 7.1 with CarPlay and interface improvements in March 2014. But starting with the recently released iOS 8, it appears that Apple has a different development schedule for 2015 and perhaps beyond. According to sources, Apple is already hard at work on three major follow-up versions to iOS 8: iOS 8.1, iOS 8.2, and iOS 8.3.
iOS 8.2 visits to 9to5Mac
We’ve confirmed that these major new versions are in development via two means. First, a developer of a major hardware-connected iOS application has shared with us their analytics, and this data indicates that all three versions are in testing by Apple employees in or around Cupertino, California. Second, and much closer to home, our own Google Analytics for 9to5Mac.com show that iOS users are visiting our website via iOS 8.1, iOS 8.2, and iOS 8.3 devices. iOS 8.1 hits to 9to5Mac.com started appearing even months before iOS 8.0 launched, but 8.2 and 8.3 visits only started picking up following iOS 8’s release in mid-September.
iOS 8.3 visits to 9to5Mac
While Apple works on several iOS features and enhancements over the course of several years, it typically only begins wholly testing major new releases close to the ship dates of the preceding release. Apple working on three significant follow-ups to iOS 8 is a shift from the usual development cycle, one which would normally indicate Apple to be working on just iOS 8.1 as well as iOS 9.0. It’s possible that iOS 9 is also in the works, and of course Apple is always working on nominal bug fix (x.x.1 or .2 or .3) updates, but the fact that 8.1, 8.2, and 8.3 are all in simultaneous development raises some interesting possibilities:
A DigiTimes report is claiming that Apple has rejected Samsung as a supplier of displays for the Apple Watch, and that all of them will be made by LG.
LG Display will supply Apple AMOLED panels for the Apple Watch, with shipments expected to reach about five million a month in 2015, according to sources at LG Display.
The company had been expected to split display production between the two companies, and the usual caution needs to be applied to DigiTimes stories, which rely on anonymous supply-chain sources.
The report claims Apple is hoping to sell upwards of 50 million smartwatches in 2015. Analyst estimates for sales of the Apple Watch range from 10M to 37M.
Apple has not yet given a launch date for the new device, stating only that it will go on sale “early next year.” The entry-level model will cost $349, but Apple has not revealed pricing for more expensive models. The top-of-the-range Edition models featuring solid gold cases are expected to go well into four figures.
Apple Watches will contain NFC chips that allow them to be used for mobile payment via Apple Pay with older iPhones. You’ll need to authorize the watch when you first put it on in the morning, and it will then remain validated for payment for as long as it remains in constant contact with your wrist.
It’s been reported that Apple will not make access to the NFC chip in the iPhone 6 generally available to developers in the first year. A new report says that an Apple spokesperson has confirmed that the chip is for use with Apple Pay only. But that’s likely only temporary…
Ahead of Apple’s entry into the mobile payment space next month with the release of Apple Pay for iPhone 6 and iPhone 6 Plus users, Apple has joined the GlobalPlatform, the non-profit association focused on standards for secure chip technology across various industries, as a full member.
Existing members of GlobalPlatform include various Apple partners and competitors alike with carriers AT&T, Sprint, and Verizon being members as well as handset makers Samsung and BlackBerry. More importantly, Apple Pay partners American Express, MasterCard, and Visa are also members; Discover, which is not yet an Apple Pay partner but has said it is discussions over participation with Apple, is also a member. Expand Expanding Close
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 …
After years of annual rumors that each successive iPhone would feature NFC, there was understandable skepticism when the rumor rolled around again this year for the iPhone 6. It was looking like Apple might have put all its short-range communication eggs in one basket with Bluetooth LE.
Instead, of course, the iPhone 6 and 6 Plus got NFC as the mechanism for Apple’s contactless payment service, Apple Pay. Pando suggests that the company’s timing may not be entire coincidental.
While U.S. banks have so far ignored the more secure chip-and-pin cards used in Europe, sticking doggedly to magnetic strips and signatures, all that will be changing next year. As of October 2015, banks are switching to chip-based cards – and that means merchants will need to upgrade their payment terminals.
You can still get chip-reading terminals without NFC, but it’s likely that the vast majority of stores will opt to go contactless at the same time. Which means that instead of the 220,000 places you can use contactless payment today, there will be much closer to nine million outlets by this time next year – and you’ll be able to pay with your iPhone 6 at any of them.
U.S. card issuers are already pushing Apple Pay, MasterCard running a full-page ad in today’s New York Times (via Business Insider).
We may finally have a reason for why Apple Stores and some other stores are installing new NFC payment hardware ahead of the iPhone 6 launch. Apple is reportedly planning on implementing a security feature called tokenzation in the system, which removes the necessity to transmit account numbers or other critical personal details wirelessly (via Bank Innovation).
This tokenization system employs secure codes become useless after being used once. That boosts security by ensuring that any information captured by nefarious third-parties doesn’t give them access to your account or money. However, not all NFC payment terminals can accept this type of payment.
In order to support the iPhone 6, stores will need to upgrade to point-of-sale systems that will function with these tokens. That’s likely why Apple has upgraded its in-store systems and McDonald’s restaurants are receiving new terminals for rollout around the time of the device’s launch despite some stores already supporting NFC payments, while a few other retailers rumored to be on board with Apple’s system are installing NFC terminals for the first time.
