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Apple to take fee for every iPhone 6 mobile payment

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Apple will take a slice of every payment made through the iPhone 6 and Apple Pay, it's been claimed.

Yesterday saw the launch of the iPhone 6 and the iPhone 6 Plus, each equipped with NFC and Apple's new mobile payment system, Apple Pay. This will see users carrying out transactions simply by swiping their iPhones over retail payment points, using Apple's Touch ID fingerprint-reading system for authentication.

Now Bloomberg is claiming that Apple will profit directly from its new payment system.

Apparently, the deals that Apple has struck with individual banks extend further than simply incorporating their cards into the Apple Pay system. According to three people with knowledge of the deals, Apple will actually claim a fee from on each transaction made.

Naturally this arrangement will be beneficial for both parties - while Apple gets the additional fees, the banks themselves will benefit from more money being spent through Apple's intuitive payment system.

Also, Apple's system uses a dynamic one-time security code that negates the need for merchants to store any sensitive information. This should lessen the need for costly fraud compensation and counteraction considerably, should the system take off.

With the mobile payments market set to quadruple over the next three years, according to some estimates, it seems like a pretty safe bet all round.

Alongside the two iPhone 6 models, Apple also announced the Apple Watch - a smartwatch that will also be able to make Apple Pay transactions.

Read More: iPhone 6 vs iPhone 6 Plus: Which is best?

Edward

September 10, 2014, 9:46 am

They simply can't stop their money grabbing... I'll be steering clear.

danielfrisbee

September 10, 2014, 1:37 pm

ebay and paypal have got an amazing set up for gradually yet repeatedly taking a two percent cut of everything that passes through their system, if apple think they can get away with something similar they'd be mad not to try. If people are happy (apparently they are) to chuck their money at apple then good luck to them all. From the outside however, it looks like insanity.

A Dimension Of Mind

September 10, 2014, 2:41 pm

Apple will be taking a cut of the fee banks already charge to the retailer for processing the transaction, not from the retailer, nor from you as you buy an item, unlike ebay, paypal, etc.

Prem Desai

September 10, 2014, 2:54 pm

Ultimately, it us - the consumer, who pays for all this ....

Mike Walker

September 10, 2014, 7:03 pm

Why shouldn't Apple make money from their own transaction system, it's no different from other transaction fees from systems already in place now!.

Edward

September 10, 2014, 7:13 pm

Why does the iPhone need it's own transaction system?
Oh... That's right... So they can take a cut! They could just as easily collaborate with other manufacturers and produce a single coherent system... But they much rather fragment the market more in order to line their own pockets... But you're right... So what... I'm just an idiot on the internet with an opinion. How dare I say anything against the almighty Apple.

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