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Apple Pay, the Cupertino-based company’s new mobile payment service announced on Tuesday, could prove to be a big source of revenue for the company during a time when music and app downloads are slowing. Bloomberg reports Apple will collect fees from banks when iPhone 6 and Apple Watch users make a purchase. Fees will be charged for every single transaction, though the fee hasn’t been detailed.

It isn’t necessarily ground breaking Apple is charging a fee, as it mirrors current fees that already accompany credit and debit cards in the US. However, it could mean a big boost to Apple’s quarterly revenue with Apple now at the forefront of the mobile payments industry.

The mobile-payments market will more than quadruple to roughly $90 billion by 2017, according to a recent study conducted by Forrester Research. Apple seems to have made big moves to capitalize on the majority of this market by signing the big banks including JPMorgan Chase, Bank of America, and Citigroup to be apart of its program.

“Gone are the days of searching for your wallet,” Apple advertises. “The wasted moments finding the right card. The swiping and waiting. Now payments happen with a single touch.”

Apple Pay will launch sometime in October, the company detailed at an event on Tuesday. To pay, Apple says you simply hold your iPhone near the contactless reader with your finger on Touch ID. A subtle vibration and beep lets you know the information has been sent and your payment has been completed.

  • rockdude094

    I love having tap to pay on my phone, but not when it’s humongous and hard to put in and out of my pocket. The 5s should have also been improved !

    • Chang in Charge

      I really think they should have added at least NFC to the existing 4″ models. There is definitely a large percentage of the population that still wants 4″ phones that could benefit from this tech.

      • rockdude094

        It would be really sad if they were to fade out the 4 inch display like they did to the 4s

      • Rowan09

        People are asking for bigger phones again, so Apple had to listen at some point.

      • James Gunaca

        The 5s/5c aren’t going anywhere. If demand stays high for those devices, it’s possible they may get outfitted with NFC tech but probably not for at least two years if, like I said, demand for 4in devices stays high. We’ll see!

      • rockdude094

        Maybe software would have been a good place to start if they were really listening to ppl.

      • Rowan09

        They did improve the software with IOS 8 and more improvements will come when the iPad is released.

      • rockdude094

        Ios 8 is nothing too major actually.

      • Rowan09

        Did you use it?

      • rockdude094

        Yup nothing too major actually. I downgraded and kept my jailbreak on my 5s

      • Ted Forbes

        Sales for smaller displays still out numbers sales for larger displays tho.

      • Rowan09

        Who were making those smaller display devices and what’s the sizes? I don’t mind a larger display anymore after getting use to them. People in China specifically wanted a larger display and it’s a huge market for Apple.

      • Agreed. even a revamped 5C would have been okay with touch ID TrueTone flash and NFC.

      • Urname

        you guys do realize that if you buy the Apple Watch, you will have Apple Pay with NFC capabilities when paired with your iPhone 5, 5c, and 5s right? Which gets rid of the pulling-gigantic-phone-out-of-pocket problem that rockdude mentions, and adds the NFC capability to the 4″ models thats Chang and James mentions

      • Guest

        Nobody is going to buy that mess

      • Rowan09

        Same thing people said about the original iPhone.

      • Its mere for the people who do not want also want to spend more money on the iWatch.

      • Ted Forbes

        Its a nice gadget and I am very sure Apple will do well as usual with AppleWatch and the ApplePay, but you would have to buy the watch, not everybody wants a watch. Our options are limited, but we do have options.

      • Ted Forbes

        Yes, this makes sense

    • Ted Forbes

      Agreed!

  • Chang in Charge

    I was thinking about buying a Coin, the Kickstarter for a card that can act as all your cards. Then i saw this Apple Pay and I thought well there is no point to this anymore. But if you combine Apply Pay and Coin you can basically leave your house with your driver’s license, a coin, and your phone and be good to go anywhere.

    • Maxim∑

      coin unfortunately wont work within a year because credit cards are no longer using purely magnetic strip ID but also a small micro chip on the front which coin cannot mimic

      All banks already switched to it, you can request an updated card for free

  • Marly Marl

    oh well in my third world country ill never see this first hand. Maybe my great grand childrens’ grand children

    • Ted Forbes

      Never see what, the coin. the ApplePay, or the card with the chip?

      • Marly Marl

        Neither of the three

  • AndroidDogHeatandSteelersFan

    Those banks don’t deserve making any more money off us!

    • Vince Reedy

      They already make it.

    • Micaiah Martin

      ha! The banks print money whenever they want. The day you were born you owed more money than you can pay to them in 3 life times.

    • Ted Forbes

      Not just the banks, it will be Apple making more money also. I am sure the fees will go up, yes the Banks will some how find a way to make more money.

      • AndroidDogHeatandSteelersFan

        banks are even lucky to be part of this process otherwise.

  • Kurt

    If it’s fee is based on a percentage of what you bought then Phil lied when he said Apple won’t know what you spent on your purchase. So if we assume he hasn’t lied, then the fee will be a flat rate fee. Which it should be in my opinion.

  • Ted Forbes

    This is a very nice and efficient way to pay bills, but lets hope that hackers do not have a field day with this technology. After you pay your devices shows the amount you pay after which you put your device away. Lets hope each time you do this the transactions have ended and not continue going on in your pocket or somewhere else.

    This is a good thing but also a scary and serious thing and I am sure they have worked this out very well. But its hard to forget the larges and most recent systems that have been compromised, largely Target, Adobe Systems, Neiman Marcus, Epsilon, Sony, Zappos, Yahoo, Micheals Stores, Global Payment Systems, and lately Apple iCloud (still to be determined).

  • EXACTLY. Personally feel like this really should be the biggest announcement yesterday (ie. biggest upside to Apple’s P&L in upcoming years) but the news totally got overshadowed by the Apple Watch. That clip also shows NFC is probably located at the top of the phone