Apple unveils contactless payments via Tap to Pay on iPhone • Hacker News Board

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#41

Post by eightysixfour » Tue, Feb 08, 2022, 3:50 PM UTC

losvedir wrote: post #33

Is this only for merchants? I feel like here in the US we still don't have a great way to send money back and forth with friends and family. Zelle is decent if both parties' banks support it, but otherwise I've tried Google Pay, Paypal, Venmo, and they all have some problem or another. A lot of them (I'm looking at you PayPal) require you to give them your bank username and password!

You can send money using Apple Pay, but most of these free money transfer applications are free because they’re using ACH, so they “need” access to the bank account to see if the underlying funds are there.

If they transact like a credit card processor, there are fees.

This is setup so that you can run an existing merchant app (launching with Stripe) and collect money with all of the same fee requirements as using stripe normally.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#42

Post by paradite » Tue, Feb 08, 2022, 3:51 PM UTC

lucioperca wrote: post #22

Let me guess, 30% goes to apple when you do that?

The technical term for the cut is called Merchant Discount Rate (MDR). It's usually 1-3%.

https://www.investopedia.com/terms/m/merchant-discount-rate....

I'm not sure what's the exact revenue share model / contractual agreements between Apple and its partner payment platforms(Stripe, etc).

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#43

Post by djrogers » Tue, Feb 08, 2022, 3:51 PM UTC

thebean11 wrote: post #13

samwillis wrote: post #10

Earlier quoted context omitted.

It looks like it's not just Apple Pay, it's excepts any card payment, the protection has to be on the merchant's iPhone.

I don't think tap to pay can be skimmed in the same way you can with swiping. You'd have to actually clone the data on the NFC chip, which isn't possible through a tap from what I understand.

It’d be trivial for a rogue payment app to display one $ amount on the screen yet deduct another.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#44

Post by twobitshifter » Tue, Feb 08, 2022, 3:51 PM UTC

losvedir wrote: post #33

Is this only for merchants? I feel like here in the US we still don't have a great way to send money back and forth with friends and family. Zelle is decent if both parties' banks support it, but otherwise I've tried Google Pay, Paypal, Venmo, and they all have some problem or another. A lot of them (I'm looking at you PayPal) require you to give them your bank username and password!

The press release includes mention of solopreneurs but nothing about friends and family, so i think there must be some business angle to it.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#45

Post by floatingatoll » Tue, Feb 08, 2022, 3:51 PM UTC

losvedir wrote: post #33

Is this only for merchants? I feel like here in the US we still don't have a great way to send money back and forth with friends and family. Zelle is decent if both parties' banks support it, but otherwise I've tried Google Pay, Paypal, Venmo, and they all have some problem or another. A lot of them (I'm looking at you PayPal) require you to give them your bank username and password!

There’s many debit card “send to friend” apps that fill this space, including Apple Cash and Square Cash and etc. but your most likely compatibility app is Venmo. I’ve had zero issues with any of the Cash apps I’ve used to date, though.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#46

Post by kencausey » Tue, Feb 08, 2022, 3:52 PM UTC

losvedir wrote: post #33

Is this only for merchants? I feel like here in the US we still don't have a great way to send money back and forth with friends and family. Zelle is decent if both parties' banks support it, but otherwise I've tried Google Pay, Paypal, Venmo, and they all have some problem or another. A lot of them (I'm looking at you PayPal) require you to give them your bank username and password!

Regarding your allegation about Paypal, are you outside of the US? I ask simply because I am in the US and have never had to provide a username or password to my bank account to Paypal. I do have a bank account linked but it was done simply by Paypal making two small deposits to my account and then withdrawing them and asking me to tell them the amounts of the transactions. Given, this was many years ago, but I would be surprised to learn that this has changed.

edit: typo

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#47

Post by TIPSIO » Tue, Feb 08, 2022, 3:52 PM UTC

I would really like to see it become normal for tipping people this way (that isn't at a cash register / tap) but with AirDrop.

For example, I recently had movers. I went out of my way to get a cash tip for them earlier. It would have been nice to skip that and just ping it at them somehow without awkwardly saying "Hey friend do you have Venmo? Apple Pay? CashApp? I'd like to tip you. What's your phone number?! Let me get that, thanks, bye, delete.".

This is NFC and a bit different but just my thoughts.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#48

Post by mojzu » Tue, Feb 08, 2022, 3:53 PM UTC

SOLAR_FIELDS wrote: post #29

axg11 wrote: post #20

Three interesting implications from this press release: - Stripe as the first user of the SDK vs Square: For any small business starting this spring, I can't think of a reason why they wouldn't use and iPhone+Stripe to start off. Zero hardware cost (assuming they have an iPhone), no need to wait for hardware delivery. - NFC will be coming to the iPad. - The ability to keep the same hardware but switch payment network…

Presumably companies like Square and Clover are selling their own POS hardware and probably are less than happy that every iPad and iPhone running latest OS with NFC is now a competitor to their hardware. Stripe does not make hardware (as far as I’m aware) so this initial partnership makes sense.

I'd imagine for these companies the hardware is a necessity to get customers into their payment processing business, could even be a loss leader rather then a profit centre. If a lot more people now have a potential POS device in their pocket it could expand their markets quite a bit, although other payment processors who formerly didn't want to or couldn't make hardware may now become competitors

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#49

Post by djrogers » Tue, Feb 08, 2022, 3:53 PM UTC

duxup wrote: post #30

llampx wrote: post #28

Earlier quoted context omitted.

Even now, they can use a Square wireless terminal and you wouldn't know if its hooked up to their personal iPhone or what.

Absolutely true.... just seems like a mounted device like they usually are seem more 'official'.

Square and similar terminals aren’t mounted anymore - the vast majority I see these days are wireless wedges that use Bluetooth or some other wireless protocol.

Re: Apple unveils contactless payments via Tap to Pay on iPhone

#50

Post by parkingrift » Tue, Feb 08, 2022, 3:53 PM UTC

duxup wrote: post #26

Kinda weird. If a rando retail person pulls out their iPhone and asks me to tap... that's kinda strange in my mind. Something about "how do I know that isn't their personal phone?" would pop in my head. But things that seem awkward can become commonplace.

People use their personal phones with Stripe, Square, and Venmo. The only difference here is the lack of a terminal. It’s ultimately processed the same way.