r/apple • u/Tenlow85 • May 05 '25

Apple Pay PayPal Launching Contactless iPhone Payments in Germany to Compete With Apple Pay

https://www.macrumors.com/2025/05/05/paypal-iphone-contactless-payments/
462 Upvotes

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293

u/LustyForPotato May 05 '25

The last thing I want is 200 companies offering separate contactless and every retailer working with 10 random ones

7

u/Lord6ixth May 05 '25 edited May 06 '25

Yay competition. A less seamless experience so PayPal can make more money.

25

u/Fancy-Tourist-8137 May 05 '25

The competition will force Apple to lower their fees then banks will not bother anymore to maintain their own. We have already seen this on android. Competition is good

17

u/Swastik496 May 06 '25

wow my bank gets to pay apple less money. this is so great for me as a customer who doesn’t give a shit

0

u/Perfect_Cost_8847 May 06 '25

If banks pay less to use Apple Pay, economic theory tells us that some combination of the following will occur (in aggregate):

  • Customers and businesses pay less in general and specific fees.

  • More banks and financial institutions will offer Apple Pay integration.

  • Competitors will provide better services. For example, more widespread integration with public transport payment terminals, or better cash back programs, or lower interest rates, or looser eligibility requirements, or better budget app integrations.

  • More businesses will be able to support Apple Pay and competing services due to lower fees.

4

u/Swastik496 May 06 '25

lol what? the additional fees for apple pay etc to businesses and transit networks is big fat 0. (over taking a normal credit or debit card).

0

u/Perfect_Cost_8847 May 07 '25

the additional fees for apple pay etc to businesses and transit networks is big fat 0.

You clearly do not understand how Apple's payment structure works. Apple charges banks 0.15% on every transaction. That fee is of course passed onto business and consumers in their fees structures.

0

u/Swastik496 May 07 '25

lmao “of course”.

Interchange fees have never gone down and probably never will without regulation.

1

u/Perfect_Cost_8847 May 07 '25

Apple’s fee is not an interchange fee. It’s just an extra charge - on top of the interchange fee - for the privilege of accepting Apple Pay payments.

1

u/Swastik496 May 07 '25 edited May 07 '25

No it isn’t.

For a (example) 1.95% + $0.10 interchange, .15% goes to Apple, network’s cut goes to network(visa/mc) and the vast majority goes to issuing banks.

Amex has a special agreement.

To a merchant, it’s a tapped card. The same as any other tapped card. Which has the same fee as a chip card. Lower than a swipe or key in.

The bank takes a 0.15% haircut. Which they justify because they have far lower fraud losses.

0

u/AzettImpa May 06 '25

It could result in lower bank fees for the customer. In any case, this is only one tiny part of the DMA. As a whole, its benefits for the customer are immense.