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Stripe – Apple Pay

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Re: Stripe – Apple Pay

#21

Post by steveklabnik »

gameguy43 wrote: post #5

"Apple Pay doesn’t replace In-App Purchases. You should use Apple Pay when charging for physical goods (such as groceries, clothing, and appliances) or for services (such as club memberships, hotel reservations, and tickets for events). You should continue to use In-App Purchases to charge for virtual goods such as premium content in your app." Anyone understand why this is? Is there a reason I shouldn't let my users…

> I don't quite understand what capitalized In-App Purchases means

https://developer.apple.com/in-app-purchase/

(sometimes abbreviated IAP)

Re: Stripe – Apple Pay

#22

Post by seanmccann »

gameguy43 wrote: post #5

"Apple Pay doesn’t replace In-App Purchases. You should use Apple Pay when charging for physical goods (such as groceries, clothing, and appliances) or for services (such as club memberships, hotel reservations, and tickets for events). You should continue to use In-App Purchases to charge for virtual goods such as premium content in your app." Anyone understand why this is? Is there a reason I shouldn't let my users…

Two big differences. In-App purchases allow for smaller transactions where Apple Pay with Stripe would actually cost 33% for $1 or 18% for $2.

In-App purchases are setup beyond just handling the payment. You can restore purchases across devices and the distribution is built in. You could replicate this experience but it is nice to avoid having to sign up specifically to use a Camera app that has an in-app purchase photo filter.

Re: Stripe – Apple Pay

#23

Post by spydertennis »

arrrg wrote: post #11
gameguy43 wrote: post #5

"Apple Pay doesn’t replace In-App Purchases. You should use Apple Pay when charging for physical goods (such as groceries, clothing, and appliances) or for services (such as club memberships, hotel reservations, and tickets for events). You should continue to use In-App Purchases to charge for virtual goods such as premium content in your app." Anyone understand why this is? Is there a reason I shouldn't let my users…

For in-app purchases Apple collects their 30%, for Apple Pay substantially less. That’s what this comes down to. In think it more or less comes down to this: If you buy something you (potentially) use inside the app (an ebook, access to some server-side service you can use with the app, …) it’s an in-app purchase. If what you buy is something you use outside the app (a taxi, a pizza, all physical goods, …) you can us…

from the perspective of a retailer, how much does apple take in the apple pay scenario? is it 0.15% + standard credit card fees?

Re: Stripe – Apple Pay

#24

Post by matthewarkin »

spydertennis wrote: post #23
arrrg wrote: post #11

Earlier quoted context omitted.

For in-app purchases Apple collects their 30%, for Apple Pay substantially less. That’s what this comes down to. In think it more or less comes down to this: If you buy something you (potentially) use inside the app (an ebook, access to some server-side service you can use with the app, …) it’s an in-app purchase. If what you buy is something you use outside the app (a taxi, a pizza, all physical goods, …) you can us…

from the perspective of a retailer, how much does apple take in the apple pay scenario? is it 0.15% + standard credit card fees?

The retailer would only pay the Stripe fee. If I understand correctly, Apple collects some fees from the bank (that they take from the interchange fee)

Re: Stripe – Apple Pay

#25

Post by skilbjo »

spydertennis wrote: post #23
arrrg wrote: post #11

Earlier quoted context omitted.

For in-app purchases Apple collects their 30%, for Apple Pay substantially less. That’s what this comes down to. In think it more or less comes down to this: If you buy something you (potentially) use inside the app (an ebook, access to some server-side service you can use with the app, …) it’s an in-app purchase. If what you buy is something you use outside the app (a taxi, a pizza, all physical goods, …) you can us…

from the perspective of a retailer, how much does apple take in the apple pay scenario? is it 0.15% + standard credit card fees?

From the perspective of the retailer, the merchant is charged the standard Stripe fee (2.9% + $0.30).

Re: Stripe – Apple Pay

#26

Post by cristinacordova »

matthewarkin wrote: post #24
spydertennis wrote: post #23

Earlier quoted context omitted.

from the perspective of a retailer, how much does apple take in the apple pay scenario? is it 0.15% + standard credit card fees?

The retailer would only pay the Stripe fee. If I understand correctly, Apple collects some fees from the bank (that they take from the interchange fee)

Cristina from Stripe here. The merchant/retailer only pays the Stripe fee (https://stripe.com/pricing) for Apple Pay transactions.

Re: Stripe – Apple Pay

#28

Post by adamfeldman »

I'm so disappointed that the 5s doesn't support Apple Pay for in-app purchases of physical goods (the payments product Stripe partners with Apple to provide).

I've yet to discover any reason why except marketing/branding – ostensibly consumers would be confused that they can use their 5s for purchases through apps but not in retail stores, due to the lack of NFC.

From a technical perspective, there doesn't seem to be anything holding the 5s back. The A7 has a secure element/"enclave" like the A8 (a cryptographically secure place on the SoC to store payment tokens, fingerprints, and the like), and the 5s has an A7 and the TouchID sensor.

EDIT: The secure element is in fact distinct from the secure enclave. agnokapathetic explains below.

Re: Stripe – Apple Pay

#29

Post by mitman »

adamfeldman wrote: post #28

I'm so disappointed that the 5s doesn't support Apple Pay for in-app purchases of physical goods (the payments product Stripe partners with Apple to provide). I've yet to discover any reason why except marketing/branding – ostensibly consumers would be confused that they can use their 5s for purchases through apps but not in retail stores, due to the lack of NFC. From a technical perspective, there doesn't seem to be…

I was under the impression that Secure Element is separate from Secure Enclave. Secure Element is for CC information and Secure Enclave for fingerprint data. Since the 5s lacks Secure Element, it makes sense why even Apple Pay in apps wouldn't work. I have not been able to find anything to suggest one way or the other, so I could be wrong. Please correct me if I said something wrong.

Re: Stripe – Apple Pay

#30

Post by agnokapathetic »

adamfeldman wrote: post #28

I'm so disappointed that the 5s doesn't support Apple Pay for in-app purchases of physical goods (the payments product Stripe partners with Apple to provide). I've yet to discover any reason why except marketing/branding – ostensibly consumers would be confused that they can use their 5s for purchases through apps but not in retail stores, due to the lack of NFC. From a technical perspective, there doesn't seem to be…

The technical reason is that while the iPhone 5s has the Secure Enclave co-Processor (SEP), it does not have an Apple Pay Secure Element (SE).

The SEP is a ARM TrustZone-like separate processor running a stripped down L4 derived microkernel. This manages encryption keys, the secure boot-loader and OS update signing.

The Apple Pay Secure Element is a separate chip which runs a Java-Card-OS. "Cards" in the java-card-OS are cryptographically "personalized" by the payment network (VISA, AMEX, MasterCard) with per-device keys and the device personal account number (DPAN)--the tokenized device only credit card.

This is the same java-card + payment network personalization that physical chip-and-pin cards, Google Wallet and most other NFC payments use.

So my guess is that the Payment Networks were not comfortable using the Secure Enclave Processor and preferred to reuse the same technology used by chip-and-pin, with a separate Secure Element chip.

Source: https://www.apple.com/privacy/docs/iOS_Security_Guide_Oct_20...

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