Re: Apple Pay

JAB <here@is.invalid> wrote:

On Tue, 7 May 2024 16:23:39 -0400, Auric Hellman
<adhellman1@gmail.com> wrote:
 

Apple's cut is reportedly at approximately 0.15 percent of each
purchase, which equates to 15 cents out of each $100 purchase.
 
https://www.macrumors.com/roundup/apple-pay/

>
>
Obviously they aren't expected to perform a service out of the goodness
of their hearts, but that's a nice little profit considering software is
doing all the work.

 
I assume it is  0.15 percent taken off of MC/VISA cut, which is quite
a bit more.  In other words, no added expense to the merchant, and no
cost penalty to iPhone user, as I understand.
 
Security wise, iPhone transactions are much safer than using a CC

This may be why.  If fraud is let's say 1% and Apple cuts it in half, it's
cheaper for the card company to pay them 0.15% and keep the remaining 0.35%
for themselves, than lose the additional 0.5% in fraud losses.

(no idea if that's realistic figures or not - banks don't like their fraud
figures being publically known)

Theo