apple pay passbook scan

Apple has negotiated a never-before-seen deal for its new mobile payment system, according to a new report from the Financial Times. Citing sources familiar with the terms of the agreement, the outlet says that the Cupertino firm stands to make 15 cents of every $100 spent (or 0.15%) using Apple Pay.

We knew that Apple stood to make a lot of money from its new Pay service, but this is the first time we’re hearing hard numbers. “It’s unprecedented,” says Dickson Chu, former engineer at PayPal and Google Wallet. “It’s somewhat surprising that Apple was able to negotiate something Google couldn’t.”

After years of speculation, Apple unveiled Apple Pay this past Tuesday during its iPhone 6 media event. The new service will allow customers to use the new handsets, and in the future the new Apple Watch, to pay for goods and services quickly and securely in both brick-and-mortar stores and online.

The service is expected to go live in October here in the US, with support from AmericanExpress, MasterCard, Visa and 6 major banks. As for stores, Apple says that more than 220,000 retailers will work with Apple Pay including Macy’s, Bloomingdales, Wallgreens, Duane Reade, Subway, and McDonalds.

[Financial Times]

  • Chang in Charge

    I feel like with Tim Cook at the helm with all this cash stock piling we are likely to get even more ground breaking products in the future.

    • Chun-Li aka ThunderThighs

      Wtf ? No. Outdated hardware gtfo

      • Fanboy 

        Define “outdated hardware”.

        Dual core processors that are just as efficient/if not better than androids quad core processors?

        A highly advanced and improved 8MP camera (yes that is right, only 8MP) that takes gorgeous photos, especially at night, that beats the majority of Androids picture quality (including all those 16MP cameras).

        A beautiful, retina display that is one of the most responsive touch screens on the market?

        I could go on. iPhone hardware has been perfected, without the need for irrelevant paper specs.

      • AndroidDogHeatandSteelersFan

        amen!

      • sosarozay300

        +1 most accurate comment

      • Kurt

        750p is out dated hardware. Camera with no OIS is out dated hardware. Should I continue? Please say yes. Please.

      • Fanboy 

        The screen is far beyond HD, and has rich colors. The iPhone 6+ has a 1080p display. And since you’ve obviously been under a rock, it also has OIS as well. Yes continue please.

      • Kurt

        you do realize that the iPhone 6 doesn’t have anything you just said. iPhone 6 is a mid tier smart phone.

        Rich colors? sorry dude, idevices are low in chroma-not badly by any means. So rich colors? no. Best screen on a mobile device and perhaps any device (color accuracy) is the Surface Pro 3. Ouch I bet that hurt your feelings as you take this stuff personal.

      • disqus_3RebKnGel1

        Hardware specs are simply hardware specs, it’s the software and optimization that separates a mid tier phone from a high end phone.

        I switched from the iPhone 5 to the Moto X (mainly because I wanted something new), which on paper is probably 2 generations behind in terms of hardware specifications. I can honestly say that it is my favorite
        phone I have ever owned. The reason I love it so much isn’t because it has X Gb of RAM or a display with X pixel density…it’s because Motorola has optimized the phone to work exquisitely with the hardware it has and then focused on delivering unique software functionality.

        Say what you want about the iPhone’s spec’s or the fact that it is late to the game in terms of NFC or size of the screen, but I can honestly say that I trust Apple to be the first company to really make NFC a commonly used feature by the masses. NFC has been on Android phones for a while, but Google was unable to do much with the technology. There have been Android phones in the past that have specs that make you drool, but then they have flaw, be it battery life or something else, that honestly makes them unusable in my opinion.

        I’m not on any side of the Windows/Google/Apple fan boy war, I just appreciate the advances all the companies are making simply because it gives me, the consumer, more options with better features.

      • Guest

        iOS is not an advanced OS

      • caa3rd

        So when they touted the “Retina Display” that is an irrelevant paper spec? Or when they said 4″ is the perfect size for your screen that is irrelevant also?

      • Matheus Lisboa

        Hardware is not that important! Performance is… If you want numbers to rub on other people’s faces than you’re using the wrong phone…

      • outdated? how so? if anything it was premature. Apple is going to make it work right and get widespread adoption. something other phone makers weren’t able to do for 2 years.

      • caa3rd

        You can already pay at all the places mentioned with Softcard or Google Wallet.

  • Maxim∑

    should help pay back the 100 million wasted with U2

    • Rowan09

      Especially when I come at a $10 million discount.

      • Jonathan

        Feel special?

      • Maxim∑

        Lol!

  • Judge

    So since Walmart/Best Buy is not on board with apple pay does that mean that the NFC will only work at those stores with apple pay or will it work with other stores as well?

    • It will only work specifically with NFC setups designed to work with Apple Pay. If it worked with any NFC payment systems Apple Pay likely wouldn’t be limited to the US and would be in more countries…

  • Nevin Merchant

    Will Apple Pay terminals allow google wallet to be used since its just NFC?

    • Ben

      I’m not sure if I’m 100% right but I think it should work with any NFC payment system but the reason Apple Pay won’t work outside of America is because of the deals apple would have to make with banks and card services in each country

  • quitcherbichinn

    With the 1 TRILLION dollars he talked about in yearly spending on cards (I’m pretty sure that’s what was said) and a payout of 0.15%…that’s a nice $1.5 billion for doing not much of anything. Pretty nice payday.

    • 40niners

      That’s how u do business, accumulate all those cards from the app store then cash in

  • Guest

    So Phil lied. He said they won’t know how much you spent. They will get a % so of course they know.

    • Umut Bilgiç

      No

  • Ali

    “…to make 15 cents of every $100 spent (or 0.15%) using Apple Pay.”
    It should be 15 cents of every $1 spent.

    • MagicHack

      Do you even know math bro?
      15 cents of 1$ is 15% and 15 cent of 100$ is 0.15%

      • Ali

        Sorry, not sure what I was thinking.

  • Gabriel Diaz

    Thats more than tax.. Thats ridiculous.