Checkout Choices: Apple Pay and the CE Retailer
Importantly, the payments ecosystem itself is not disrupted – only the means of initiating the payments. So the consumer still has their credit/debit card issuer, whose card the consumer loads into his or her iPhone, and the merchant still has the consumer’s payments provider that provides acceptance services for electronic payments. Apple has partnered with ETA members Visa, MasterCard, American Express, First Data, and others to enable the payments flow from retailer to card issuer. On the issuing side, ETA members Chase, Bank of America, Wells Fargo, Capital One, and others (representing 83 percent of credit/debit cards in the market today) have partnered with Apple to allow their customers to load cards into the Apple Pay wallet.
Only about 220,000 merchants in the U.S. have activated NFC capability, and although many Android phone models have NFC built in, the iPhone 6 is the first iOS device with NFC. With tens of millions of NFC-enabled phones in consumer hands in the U.S. in 2015, the future ubiquity of mobile payments seems all but certain.
Can a terminal that accepts card swipes be used to accept Apple Pay?