Apple Pay in action

With Apple Pay set to launch later this month with support from big retailers such as Macy’s, Staples, Disney Store, and many more, there has been some drama building regarding the fact that Apple still has a lot of work to do to convince some big names to get on the Apple Pay bandwagon.

A post on the Daily Dot today exemplifies this, claiming that Pizza Hut, Chipotle, and H&M, Coach, Bed, Bath & Beyond, Sears, Kmart, BP, Starbucks, and more don’t plan on offering support for Apple Pay.

This sure makes for great headlines, but this kind of post usually fails to omit that retailers aren’t against Apple Pay, they’re just not on board with updating their costly point of sale systems.

The reality is that any store allowing contactless (NFC) payments through their point of sale system will effectively support Apple Pay. In essence, Apple Pay is not a program for which you decide or not to participate. Merchants don’t have to agree to specific terms. They don’t have to be approved by Apple. All merchants have to do to provide support for Apple Pay is to have a point of sale system that supports NFC/contactless transactions.

The problem is that most point of sale systems are just old machines that haven’t been futureproofed. But as MacRumors rightfully points out, things will probably change as of October 2015, when merchants that do not offer support for EMV chip card technology may be held responsible in case of fraudulent transactions. It is believed that most merchants will then update their point of sale system to offer support for EMV chip technology and NFC at the same time, but as you can imagine, this transition will take time and money.

At the end of the day, it’s not so much a case of Pizza Hut, Chipotle, and H&M, Coach, Bed, Bath & Beyond, Sears, Kmart, BP, and Starbucks not willing to support Apple Pay. It’s rather a case of all these merchants not willing to invest large amounts of money in updating their point of sale system.

The fact that merchants may bear responsibility for processed fraudulent transactions past October 2015 will certainly be a motivator for them to update their system, but it won’t be a legal requirement.

Contactless transactions are the future of payments, and nothing will change this, but as with all new technologies, it will need some time to roll out. There will be early adopters, and there will be late comers. But saying some retailers just don’t want to commit to Apple Pay is just ridiculous headlines that do not paint an accurate picture of the reality.

Source: Daily Dot via MacRumors

  • Al

    Sebastien,

    I read another reason some retailers won’t support is through some type of e-commerce network called Merchant Customer Exchange. It involves using some type of app instead of using NFC.

    Which retailers like Best Buy & WalMart are backing… but I tend to think when users of Apple Pay demand it, that’s when more retailers will implement it. I think in the end, it’s the customers who will push this technology forward

    • I haven’t heard about that.

      Retailers can fight NFC all they want, they’re just going to have to go with it eventually.

      You know how it sucks to go to a store that doesn’t accept credit cards? Well, it will feel the same when you go to one of these stores that doesn’t accept contactless payment. Of course, it will take a few years to become the norm, but there is no going away from it.

  • Fanboy 

    I’m going to feel like an A-Hole this month pulling out my shiny new iPhone to pay

    • Show off. Me too though, I’m used to it now lol..

    • Chris

      Haha

  • Joey_Z

    The best driving force is profit. If ApplePay is popular enough and convenient enough that it influences people’s preference on where to shop, then I don’t think any of the above retailers would work against making more money.

  • Virus

    No point wasting million upgrading your till if less than 2% of your customers is going to use Apple Pay they still going to pay with it via cash or their card so not like they’re losing a sale

    • Brandon

      i dont know about in the USA, but in Canada, contactless payments are already very popular as both the leading debit provider (Interac) as well as both Visa and Mastercard have cards out that support it. A lot of retailers here are upgrading quite their systems quite rapidly.

    • 空白

      I work for one of the listed retailers and we need new POS machines before we need new PIN pads. Talk about losing sales. Extremely frustrating for everyone involved when you’re working with machines from 2001.

      • benny001

        You think that’s bad, try working with a system from 1980s, search AS400, IT’S LIKE NAVIGATING THE MATRIX WITH KEYS FROM F1 – F24. GOOGLE IT

      • Alex Ruski

        here in Brazil they are really common!

  • TwinSon

    It’s not just Apple Pay. If anything, Apple Pay will have average Android smartphone consumers questioning how they will be able to use tap and pay on their phones. That’ll put pressure on Google to make Google Wallet better. Then retailers won’t just be missing out on Apple Pay customers either. We’ll see how this plays out.

  • iRy757

    If enough people go in asking if they accept Apple Pay, eventually it will have to be adapted.

  • Khalid Tahhan

    Apple pay’s only enemy is the fact it is limited to apple products. It is usually ok to have something closed/exclusive to your platform (e.g. iMessage, FaceTime or in the case of nintendo – mario) but when it entails someone else (the retailers) needing to invest in hardware, it will be challenging. Anyone with an apple device that wants to pay with apple pay will have a credit card (as you need one to use apple pay anyways) so theoretically they are not attracting extra business that they couldn’t have tapped into if they did not have apple pay.
    On the other extreme i see bitcoin – anyone can open an account (no credit checks/bank account or credit card needed) and use it to pay for stuff. This has more potential of bringing in new untapped buying potential as this can monetize from people who normally wouldn’t have credit cards for example and is cross platform so no limitations to who can be a potential new customer.

    • Rowan09

      Apple Pay uses NFC not a special Apple specific reader. NFC payments in the US never became popular after it was introduced. I heard one of the reasons was it being easy to get the information from out the air with a reader.

      • Khalid Tahhan

        NFC connected to your credit card is possible to have data stolen over the air. Apple pay uses a token system (like a single use credit card per transaction) with no personal data so theoretically it is safer than NFC credit cards.
        Actually this now makes me rethink my statement above. Basically what apple is doing is introducing a layer of security in front of your credit card credentials to prevent fraud so that could by itself be an incentive to the retailers.

      • Rowan09

        Yes they are adding a few layers of security, but it’s still being used by an NFC reader. Apple have the banks on their side including the major credit card companies, so we’ll see if it takes off.

      • shojus

        It’s probably more common to get mugged than it will be to steal someone’s info through NFC technology. People are so scared to even do online banking when most people don’t seem to understand that all of their information is already online they just aren’t accessing it! I have been using Google wallet since it came out years ago and have nothing but good things to say about it. If you are going to be targeted then they are going to get you no matter what method you use !

  • jack

    “the reports of my death have been greatly exaggerated”

  • benny001

    You think that’s bad, try working with a system from 1980s, search AS400, IT’S LIKE NAVIGATING THE MATRIX WITH KEYS FROM F1 – F24. GOOGLE IT
    P. C. Richard & Son uses it.

  • JimGramze

    The little town I live in has barely progressed from trading goats to using cash. Aw shucks he must be shy, always looking down at his hands like that.

  • Blip dude

    Call me an A-Hole or a D-bag, but over time, unless I am forced to, I will stop going to non Apple Pay places altogether. I am already doing my best to avoid places that only accept cash (though since I always carry SOME cash with me, I might make an exception), I know over time, I will begin to avoid places that don’t accept NFC.

    For brick and mortar, Amazon and Target online will solve that problem, but restaurants and theme parks, and small mom and pop shops are places were I have to make an exception at least short term.

  • CreeDiddy

    Unfortunately Google Wallet will benefit in adaption due to Apple Pay. I love how Apple changes the landscape of security and purchasing as they have executed a plan to make NFC relevant. I go back to Android saying the IPhone 6 is so 2012, but it takes a 2014 phone to make a 2011 Google concept to become 2014.

  • Josh

    I was sitting at a restaurant yesterday and in the booth next to me some girls were talking. I came to realize these girls are managers at a Chickfila. They talked about a new lean chicken and most importantly the new iPad drive thru. Turns out in the next several months Chickfilas will have iPads at the drive thru menu for customers to order on. One girl said they are working on having it so customers can pay at the menu as well. If they are using iPads I can only assume that means apple pay will be offered at Chickfila

  • Bob

    When I first saw Apple Pay, I thought it just cloned your contactless card and you could use it at any existing NFC paypoint without hassle.

  • ♋JULY 17♋

    Being cheap that what it is

  • Gregory D Foster

    Funny. Seems like Starbucks would have been onboard already. They’re usually quick to adapt. Except for making decent coffee.

  • Macdemon

    The important question is “When is Apple Pay coming to the shores of the UK”????

  • mav3rick

    The misunderstood by the merchants payment system…
    Dream on… because everybody should get a $600 device to pay for stuff…