Apple Pay and EMV Own The Payments News Cycle So Far This Year
Since the arrival of Apple Pay there has been so much buzz in the payment processing industry and there are several brands that are riding the wave lining their investors pockets and grabbing headlines including the US Government.
Apple pay works by allowing people to use their iPhone 6 or iPhone 6 Plus to pay for purchases simply by tapping your phone to the credit card POS (Point Of Sale). To do this, Apple Customers simply add a credit card from their iTunes account or using the phones camera to take a picture of your card to be stored on the phone. Then they hold their phone in front of the card reader and use the fingerprint sensor to confirm their payment. This eliminates the hassle of carrying a wallet and a phone which can be an added convenience.
So far there have been over 80 financial institutions that currently support Apple Pay including Bank of America, Wells Fargo, Chase, Citi and several more. Banks and financial institutions are not the only ones taking advantage of the “Apple” effect companies retailers like Macy’s, Whole Foods, Walgreens, Subway, and Panera Bread. All of these companies have been early adopters and a main reason is that they had the EMV updated credit card POS machines in place already to accept the payments.
The EMV chip and pin technology as well as the NFC contactless payment technology will be common place before the end of 2015 as come October there is a liability shift for fraudulent charges. This means if a merchant does not have the EMV ready POS machines they will be 100% liable for fraudulent charges. Many major retailers have already upgraded their POS machines but what about small business? We have found that 7 out of 10 small business owners are not aware of the liability shift coming this year. This can have a devastating effect to their bottom line if they do not upgrade their payment processing equipment. So we are pitching in and offering free EMV and Apple Pay enabled terminals.
The US Government has also jumped on board with Apple Pay adoption with more than 9 million Federal payment cards being issued that are EMV Chip and Pin ready including those for VA and Social Security Benefits. This government adoption could be the final stamp of approval needed for Apple Pay and mobile commerce.