Re: Apple Pay hurdles

The majority of the market commentators believe that MCX is going to go the
way of the dodo and that Apple Pay will ultimately be accepted at the tills
of these retailers.

The problem MCX have is that they are disabling Apple Pay to promote their
own system CurrentC which tries to bypass the card networks by debiting
user's chequing accounts directly.
Why is this a problem?
1. The system is poorly designed and a lot harder to use than simply
swiping a card.
2. As yet their is no incentive for customers to use CurrentC (it's not
actually available to use yet) and by the time it launches in early-2015
expect Apple Pay to be able to match any loyalty or coupon system CurrentC
offers.
3. Apple Pay doesn't share your identity with merchants and Apple doesn't
track your spending either. The merchants don'tlike that but surprise
surprise, consumers do.
4. Consumers like using their credit cards because of the consumer
protection tied to it
5. Some of the biggest retailers have recently had significant data
breaches and yet they expect their customers to use an app that requires
them to provide data to the retailer that would give the retailer the
ability to debit funds directly from their chequing accounts.

Basically, the MCX retailers are desperate to cut out the card networks (to
reduce the fees they pay) but are doing this at the expense of their
customers.
Sounds like a bad idea to me.

Final thought.
Apple Pay is a token based contactless payment mechanism using biometric
security to secure the client. Today it uses tokens that are processed on
card networks to authorise the payment against a card.
If a new better payment mechanism (push based hopefully) becomes popular
what is stopping Apple from integrating this into Apple Pay?
Why is it impossible to imagine that the TouchId can't be used eventually
to unlock a locally stored Bitcoin wallet (or similar - the 10 minute
clearing on Bitcoin is a problem for b&m sales) and make a payment.

On 28 October 2014 08:46, Anders Rundgren <anders.rundgren.net@gmail.com>
wrote:

> http://www.cnet.com/news/apple-caught-in-the-middle-of-
> feud-between-merchants-credit-card-companies/
>
> In most EU countries payments using payment cards do not involve the card
> networks.
>
> Apple must have overlooked that fact...
>
> This is why the WebCrypto++ payment demo was designed to be equally
> suitable for the
> big credit card networks as for bank-to-bank and ACH transactions.
>
> Unlike the cards used in the physical world that comes with a credit-card
> brand as well,
> you would probably enroll separate virtual cards for reasons like fee
> differentiation,
> branding and simply to get a cleaner design.
>
> Anders
> https://mobilepki.org/WebCryptoPlusPlus
>
>
>
>