“Apple Pay” and Credit Unions

Just when you think you are caught up and what could be next? Here it is “Apple Pay”!

For the banks and credit card networks, Apple Pay could threaten some revenue streams, since Apple is getting a financial piece of every transaction. In return, the banking industry is hoping for improved POS security and privacy benefits as well as inroads into an expanded online and mobile purchasing universe.

Reports indicate that the financial services industry began working on the Apple Pay project in January 2013, when Apple had the first concrete conversations with the credit card networks. In the summer of 2013, Apple approached the top six banks involved in the project (American Express, Bank of America, Capital One Bank, Chase, Citi and Wells Fargo), without revealing what other banks were involved.

Willing participation of the top six banks as well as Barclaycard, Navy Federal Credit Union, PNC Bank, USAA and U.S. Bank suggests both Apple’s power in the mobile space and the recognition that there are other payment solutions being promoted that are not as willing to work with the banking industry. For instance, the Merchant Customer Exchange (MCX) would prefer to replace the card networks altogether. This is highlighted by the fact that the two most prominent members of MCX, Walmart and Best Buy, announced that they would not accept Apple Pay

To read more and see who the players are and how it will Impact Non-Participating Banks and credit unions visit - http://thefinancialbrand.com/42321/banks-promote-apple-digital-payments/