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Why Apple Pay could be the mobile-payment system you'll actually use

Rich Mogull | Sept. 15, 2014
If you've ever bought gas from inside the station, or perhaps some aspirin from a national pharmacy chain, you've probably seen those payment terminals with a Touch Here sticker at the top, inviting you to pay by just tapping the terminal with your credit card (instead of swiping). If you saw Tuesday's video demo of Apple's new Apple Pay system in action, you probably noticed something very similar.

Using systems like Apple Pay also reduces merchant risk. You might not know it, but merchants pay the costs of fraudulent purchases, and online providers pay higher per-transaction fees due to the higher risk of not seeing the card. Issuing banks pay the costs of re-issuing compromised cards. (You'll notice VISA, MasterCard, and American Express don't seem to pay much of anything.) No wonder merchants and card issuers like Apple Pay: it reduces their risks and costs.

Apple Pay is simply more secure for merchants and payment networks, and more private for consumers. Better user experience, better security, and better privacy, all backed with a business model that makes sense for nearly everyone involved (except merchants and carriers who want to track your behavior): I think we can see where this is headed.


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