Apple want to revolutionize the way people shop. They have announced Apple Pay, which will replace all the cards from various banks all around into the digital smartphone. All the card data will be safe and encrypted within the user’s device, which Apple claim to be the Secure Element and money can be paid with just a tap of Apple iPhone or the Apple Watch without the hassle of entering card details. Apple has already partnered with many banks all across the Globe.
A report from Bloomberg says that Apple will collect a fee from banks every time consumers use the company’s new Apple Pay payments solution.
While that gives the tech company a share of the more than $40 billion that banks generate annually from so-called swipe fees, lenders expect to benefit as consumers spend more of their money via mobile phones and other digital devices, the person said.
Apple Pay service would be available to over 220,000 US merchants at present. Bloomberg also added that, Apple did not specify the exact size of the fee, noting that it could vary or be tied to the value of the purchases made by the consumer. Apple Pay will also be compatible with American Express, Mastercard, and Visa credit and debit cards.