US banks want to renegotiate Apple Pay terms

Posted on Oct 6, 2021, 6:13 PMUpdated Oct 6, 2021, 7:22 PM

After the euphoria, it is now time for renegotiation between Apple and the banks. At least in the United States. According to the “Wall Street Journal”, several American financial establishments are putting pressure on the firm to the apple to change the rules which apply on the transactions carried out with Apple Pay. Objective: to reduce the commissions that banks pay to Apple on transactions made with its payment application.

The payment giant Visa is said to be in the process of negotiating these changes. It acts as a link between the Apple Pay application, which includes all the information related to the bank card and therefore allows contactless payment with your smartphone, and the banks.

The proposed change would apply to recurring payments to the same service, such as a monthly subscription to a streaming service or to a sports club. For now, on each transaction made with Apple Pay, Apple charges a commission of 0.15% on each purchase, according to the “Wall Street Journal”.

Commission on subscriptions

The banks would like this commission to be taken only once, during the contractualization. Apple is opposed to it.

“Our banking partners continue to see the benefits of offering Apple Pay, and they are also investing in installing and promoting Apple Pay to their own customers as a private and secure means of payment,” in store as online, ”commented the Cupertino group, in a statement sent to the American daily.

Seven years after the arrival of Apple Pay, banks are therefore starting to rebel. At the time, the innovation brought by Apple with its mobile “wallet”, its notoriety and the strength of its ecosystem had convinced financial institutions to sign with the technology firm, despite very favorable conditions for it.

The previous Apple Card

In France, where Apple Pay has been present since 2016, some banks, such as Crédit Mutuel and Crédit Agricole, balked before joining forces with the Californian giant. But they all or almost now offer it, while mobile payment is becoming a strong trend in the market, further accelerated recently by the health crisis.

In the United States, however, the big banks would be somewhat disappointed by the adoption of Apple’s digital wallet, which was slower than expected. Above all, they moderately appreciated an initiative by Apple in 2019, which decided to launch its own credit card (Apple Card) by partnering with Goldman Sachs. Making the firm at the apple a real competitor and no longer just a partner in payment.

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