I doubt Apple will make any money off of transactions, can someone prove me wrong? They aren't part of the exchange, so they wouldn't have any way to collect fees. I don't know where the author thinks there would be "extra costs" - payment technology has always been something the financial institutes absorbed. In this case, I imagine Apple incurred the cost of developing the app and the payment networks will have an ongoing cost to maintain their Token Service Provider.
Apple Pay is really just an implementation of the contactless schemes (I say schemes because mastercard, visa and amex have their own flavours which preceded EMV's specs) using EMV tokenization, as the author mentions.
I agree that the payment system and requiring a third and fourth party can eventually be eliminated, but how can we expect the financial institutes to replace credit cards when they have no control over the payment networks?
Edit: I know a few years ago there was a new group created by merchants to develop a "payment card" which would be free of charges. Seeing how big merchants are, it would only make sense that they collaborate to develop a free payment technology which works with the financial institutes.
Very interesting! I wonder how they will record a transaction - they said they weren't going to keep any information, but they'll need to keep a ledger somewhere of all transactions that occur on their phones.
Apple Pay is really just an implementation of the contactless schemes (I say schemes because mastercard, visa and amex have their own flavours which preceded EMV's specs) using EMV tokenization, as the author mentions.
I agree that the payment system and requiring a third and fourth party can eventually be eliminated, but how can we expect the financial institutes to replace credit cards when they have no control over the payment networks?
Edit: I know a few years ago there was a new group created by merchants to develop a "payment card" which would be free of charges. Seeing how big merchants are, it would only make sense that they collaborate to develop a free payment technology which works with the financial institutes.