Posted Tuesday, September 9, 2014 10:15 PM | Contributed by Jeff
Apple's new Apple Pay -- a system that allows purchases via the new upsized iPhone 6 and iPhone 6 Plus -- will work at Walt Disney World right off the bat when it launches in October. Apple Pay also will work with the upcoming Apple Watch that was introduced Tuesday afternoon.
Read more from The Orlando Sentinel.
So I've been busy working all day and haven't caught up on the details of the Apple announcements. How is this any different or better than what has been available on Android and Windows Phone for ages? The adoption on those platforms has been pretty dismal.
Apple's doing it, that's what's different.
That, and supposedly it doesn't store the credit card information or expose any info to the merchant. Not sure what that means, though, since the merchant needs something for their records. It'll obviously use Touch ID for authentication. Otherwise, it's just another NFC-wielding mobile payment system.
I'm pretty sure this tokenization (abstracting actual payment info) is what goes on with the other platforms too. I've never even bothered to set it up because I see it available in so few places (a few vending machines and McDonald's, where I rarely go).
I think Disney is kind of missing the obvious here, or maybe they just haven't turned it on. You can already associate your credit card with your hotel folio and MagicBand, so why not do the same for everyone else? SeaWorld Parks are doing that in certain locations. You can scan your phone to buy plushies and slushies and I worked hard on that. :)
It's definitely not widespread enough as is, but hopefully Apple's push will fix that. For now, I'm contented to at least be able to use my Nexus 5 at any meijer store via Google Wallet. :)
Looks like they have a bunch of businesses on board.
Just what I could dig up in a few seconds.
As for the "how":
By waving their phone next to a reader, users can pay for purchases using Apple Pay. Users add a credit card to their Apple Pay account by snapping a photo of their card and authorizing it using their phone's fingerprint reader.
And on the subject of "why":
“Security and privacy is at the core of Apple Pay. When you’re using Apple Pay in a store, restaurant or other merchant, cashiers will no longer see your name, credit card number or security code, helping to reduce the potential for fraud,”
I like the convenience. If this helps make this sort of thing more mainstream, then great. I don't get the paranoia though. I don't understand honestly worrying when you hand your card over to someone. It's not even on my radar.
I guess my real question was whether or not Apple's clout could mainstream it or not, considering it's already available to some enormous percentage of the smart phone owning population. And I agree, I don't get the paranoia either, especially since you're not on the hook for fraudulent charges in the first place. And make no mistake... every large enterprise that sells you stuff is storing your card number somewhere.
Jeff said: you're not on the hook for fraudulent charges in the first place.
Big difference between Credit Card and Debit Card.
Apple seems to have the knack for marketing / packaging / simplifying stuff to succeed. Partnering with plenty of big name businesses is definitely a step in the right direction for mass adoption.
Apple didn't have the first MP3 player, touchscreen phone, or tablet, but they certainly figured out how to make them the new standards.
After seeing the iWatch unveiled today, I thought... "Oh, sort of like the Samsung Galaxy Watch..." I don't think that has been particularly successful, yet I've had people texting me today about the iWatch as if it's the first of its kind.
It's interesting to see new technologies catch on (with clever marketing) after stumbling or failing for awhile. I can't wait to see if Apple can pull off or get the ball rolling for the digital wallet and the smart watch.Last edited by Jeph, Wednesday, September 10, 2014 2:15 AM
The technology is cool, but I don't have a problem with pulling out my credit or debt card and swiping it. I have no problem looking on the back for the three-digit code.
I get a little nervous when someone has my credit or debt card out of my sight. It's simple to record the raised number from the card in less than a second with some receipt paper and a pen. They just need one rub. It's never happened to me or anyone I know though, so I know the paranoia is a little unnecessary.
It's really a good idea for a business to offer this method of payment. The easier it is to pay, the more they will sell.
Big difference between Credit Card and Debit Card.
For the purpose of liability under Visa/MC rules, there isn't a big difference beyond missing a bunch of money until you report it.
You'd have thought Disney would have had their fill of Apple after the whole Snow White debacle... *wink*
Isn't the Jobs estate one of the biggest, if not the biggest non-institutional shareholder in Disney?
For those interested, here is a summary of liability coverage for the various card issuers/types/transaction modalities:
Short version: PIN-based debit transactions can be dicey depending on issuing bank/network. Most everything else is covered.
That's why I pretty much always process as credit. :)
Has anyone seen what the fee-sharing agreements might be? Even a small slice of transaction fees going to Apple could be sizable if this takes off.
I'm not sure if they're really involved, only because this stuff works with the same hardware that has been around for a few years. I think this is all based on existing standards, contrary to what Apple might have you believe.
Actually this is the first time JPMorgan / Chase has participated in any tokenized form of payments, I know this because I received the company memo yesterday after the news was made public. I don't claim to know the specifics but I know that part and also that Apple reportedly cut a deal w/ the major banks to receive the 'card present' rates rather than the 'non-present' rates which is also the first deal of its kind. EDIT: They received this rate because Apple agreed to hold a portion of the risk of the transaction, which they gladly accepted because they know TouchID works perfectly.Last edited by RollrCoastrCrazy, Wednesday, September 10, 2014 2:45 PM
While Google fans might crow that they've had mobile payments for years I think it's crazy to not admit that they completely failed in their attempts to make it mainstream... hell Verizon even banned Google Wallet entirely.
Apple holds much more power with consumers and carriers than Google or any Android manufacturer. I predict Apple Pay will take off swiftly because of this fact.
I'm a lifelong Android user and I had no idea something like that was available.
So yeah, I'd say it's been a fail up to this point.
Like I said above, I hope this helps the concept go mainstream across all platforms.
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