Bank Innovation shares some new details on Apple’s mobile payments project this afternoon, reporting the company has managed to negotiate deals for lower credit card transaction fees with several banking institutions. This includes JP Morgan Chase, Citigroup, Capital One, and Bank of America.
Citing sources familiar with the negotiations, the site says that the banks have all agreed to give Apple a flat transaction rate for both in-store and online purchases, which is fairly uncommon in the industry. They will also apparently give the Cupertino firm a 10% discount on all of its processing fees.
Bank Innovation’s Ian Kar explains that the banks inked the deal for two reasons: one, Apple agreed to include all cards from the issuers, and two, it said it would assume some sort of liability in the service. It plans to authenticate transactions via Touch ID and location data from the new iPhone’s NFC chip.
Today’s scoop follows several other reports regarding Apple’s apparent mobile payments project. The company is said to have signed on Visa, MasterCard and American Express for the service, as well as several high-end retailers, and it’s believed that it plans to unveil it at its iPhone event next Tuesday.