Why Apple Pay will eventually force bankers to appeal for protective relief from regulators

“On the surface, Apple Pay should make bankers quake. Apple is not required to be a bank in order to offer banking services — which, let’s be honest, includes payments,” JJ Hornblass reports for Bank Innovation. “So why aren’t bankers panicking?”

“The video [in the full article], which features Mark Curran, payment technology services director at Lloyds Banking Group, and Christophe Uzureau, a vice president at Gartner, is arguably one of the most enlightened explanations of the bank defense against Apple, despite in all its suit-and-tie dullness,” Hornblass reports. “Curran astutely explains how Apple has gone into banking — without ‘having to crack the international boundaries of banking or become a global payments provider. They will simply use whichever bank is in that location … whoever pays them the most to be their chosen provider,’ he said yesterday from the SIBOS conference in Boston. ‘It is a really strong place to be.'”

“While Curran acknowledges that “the capability of [the iPhone] is game-changing for them,” he pinpoints to the crucial fact that will likely leave Apple and other ‘consumer’ ventures without the vast, vast majority of banking revenue: ‘There are an awful lot of consumer use cases beyond paying for my Starbucks in the morning,'” Hornblass reports. “And what will restrict Apple and others from those ‘use cases?’ Regulations. If you listen carefully to Curran, what he is effectively saying is that mainstream banks — and we are talking about the global mega-banks here, such as Lloyds — will eventually appeal for protective relief from regulators, if they haven’t done so already.”

See the video in the full article – recommended – here.

Related articles:
Bill Gates: Apple Pay is ‘fantastic’ and a ‘real contribution’ – October 3, 2014
Apple Pay: An in-depth look the world’s most secure payment system – October 2, 2014
With Apple Pay launch, mobile payments have finally arrived – October 2, 2014
The kids aren’t into PayPal as Apple Pay rules mobile-pay buzz – October 2, 2014
Bitten by Apple Pay, eBay gets 3 downgrades – October 1, 2014
Apple Pay arriving with iOS 8.1 this month, sources say – October 1, 2014
iOS 8.1 beta shows Apple Pay to work with Siri – October 1, 2014
Apple Pay: A semi-monopoly on the real killer app – October 1, 2014
Apple Pay casts shadow on PayPal Spinoff – October 1, 2014
How PayPal blew their chance to be an Apple Pay preferred partner – September 30, 2014
As Apple Pay rolls out, eBay plans to spin off PayPal business – September 30, 2014
The rush is on worldwide to support Apple’s revolutionary Apple Pay – September 19, 2014
Apple Pay set to radically change commerce – September 18, 2014
Banks race to gain Apple Pay advantage – September 16, 2014
Apple Pay triggers pure panic at PayPal, begets ‘dumbest ad campaign ever’ – September 16, 2014
Frightened PayPal slams Apple Pay in full-page newspaper ads – September 15, 2014


  1. That super-wealthy fraction of a top percent will always make sure they get their cut, and continue to bleed off the wealth of the other 99.x %. They have the money/power thus control the government regulators and even a company as big as Apple will have to play by their rules, or face the regulatory consequences.

    1. ET, Not sure where much of this is coming from. Right now, Apple is just a connection between the store, the buyer and the credit card company. They are providing secure communication to verify purchase.

      If Apple wanted to do more, such as become the largest bank in the world, it would not be hard. Just take 100 Billion and make an overseas bank and move forward.
      But they don’t do that. They say NO 1000 times to each yes.

  2. Curran might want to be careful, Apple just needs to flip a switch and instantly become the gorilla (King freak’s Kong) of the banking world.

    Honestly as soon as I saw “Gartner”, I realized this was pretty much paid FUD.

  3. Do any of the Banksters we (the public via our government and central bank- the Fed) bailed out at 100 cents on the Dollar ever stop bitching about regulation? Regulations are the rules of the game. Can you imagine if every conversation with a coach/manager/athlete was endless bitching about rules?

    Look at the money in your wallet. That money is issued by the US Government (if you are in the US) and is worth the face value because the government says it is. Apart from that it is a piece of paper that has no material value like a gold or silver coin. When you deal in currency you are playing the game devised by governments and that means by their rules.

    Yes, I know coaches and managers work the refs, trying to get a little consideration along the way, but it is not the first and last thought on their minds. The banksters should STFU and be happy that they were not perp walked into a police station and booked for the shit they pulled.

    We do need a regulatory rethink of banking and payments in this age, but the banksters are the last people I would trust to write the rules. They are not happy unless they stack things into a heads I win tales you lose proposition.

    1. A gold or silver coin only has value because people says it does too. Now metals like gold and silver have other purposes, but in the sense of using gold or silver to mint a coin to trade for goods and services, the concept is the same. The vast majority of people have no real use for gold or silver, other than as money.

  4. This is complete FUD. Mark my word, Apple Pay is providing a real jolt to the payments industry with their solution, which will span the global card networks & the large global banks. The millions and millions of iPhone users will come to expect the places that they shop globally to support ‘one touch ID’ Apple Pay; the momentum will come from the consumer and those banks that support Apple Pay will see customers migrate to their credit cards; interesting that they have a guy from Lloyds (large UK centric bank) on the discussion with Gartner (clueless), because these local banks are going to be in direct competition with the large global players for customers.

    1. Correct. Pay is really just a quantum leap forward in secure payment systems, much like the magnetic striped card was for credit cards when it came out some 30 years ago. Apple’s not banking; it’s a technology provider for the banking industry.

      But if these banks later don’t play along . . . MMUUUHAHAHAHAHAHAHAHA!!!!!!!

  5. You can get a credit card at Targe, Home Depot, etc., but they are not a bank either. What’s the difference? Lot’s of non-banks offer banking services with one or more banks to back them up. That is what Apple is doing.

    In an way that will change the entire industry…

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