In an in-depth overview of Apple Pay published yesterday, it was reported that Apple’s banking and credit card network partners are willing to offer lower per-transaction fees thanks in large part to the technology’s integration. For example, despite being a “no card present” touch-less solution, Apple Pay will be charged at rates below even “card present” tiers, a major discount competing wireless payment makers were unable to secure.
In the place of higher transaction fees, banks are reportedly looking to make up the difference in volume, driven by a rapid adoption of the Apple Pay system. Ideally, the banks will see consumers moving away from cash, and paying via Apple Pay instead.
Apple’s system is also designed to be more secure than traditional swipe-to-pay methods, as the company’s payments system is tokenized, meaning credit or debit card numbers – along with other sensitive information – are replaced with generated codes.
Apple Pay is scheduled to debut later this year, for use with Apple’s new iPhone 6 and iPhone 6 Plus handsets and the upcoming Apple Watch, due in 2015.