Re: Apple Pay hurdles

On 10/28/14 4:57 AM, Anders Rundgren wrote:
> On 2014-10-28 08:44, Adrian Hope-Bailie wrote:
>> 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.
>
> The CurrentC technology may be bad but the concept of direct debit 
> bypassing
> the credit-card networks is established since at least 20 years back 
> in Europe.
> Credit is essentially only used when you are either broke, abroad or 
> on the web
> (on foreign sites).
>
>
>>
>> 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?
>
> I'm sure that is possible.


And it will happen. Only variable is time.

> What's unclear to me is the win at least
> when applied to existing payment networks.

Payment Networks 3.0 is what I hope this Web Payment effort is 
fundamentally about. Sticking with the Dodo theme, the older payment 
networks are "walking dead" to put things mildly  :-)

>
> It seems that loyalty schemes are currently unsupported by Apple Pay.

That's simply a function of relations. Basically, what RDF and Linked 
Data bring to the table. The data that represents something MUST be 
decoupled from the agents that process it.

"Loyalty Schemes" are something you would describe using RDF based 
Linked Data. Then you would simply act on said schemes via debits and 
credit oriented operations that change data state ....

> This is covered by the Google Wallet.

In a tightly-coupled manner. It has to be loosely-coupled in order for 
it to scale, on the Web.
>
> It is a pity that there's so little information available.

Expect it to emerge. Only variable is timeframe :)

-- 
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