Apple Pay is nirvana for (smart) retailers

“When executives at the chain restaurant Panera Bread started having secret talks with Apple in June, they immediately knew Apple Pay was a safe bet,” Jose Pagliery writes for CNNMoney. “It takes a huge target off the company’s back. Apple Pay’s security features mean that Panera Bread doesn’t collect credit card data from shoppers, so it has less to lose if it ever gets hacked.”

“Instead of handing shops your credit card, Apple Pay generates a one-time-use, unique code. It’s not worth stealing. ‘That’s nirvana for merchants,’ said Jason Oxman, who heads the Electronic Transaction Association trade group,” Pagliery writes. “Target already faces $148 million in costs related to its data breach last year. Home Depot is expected to pay out even more.”

“The only downside for retailers: They lose the ability to track shoppers the traditional way. Ever give up your zip code at checkout? Stores routinely pair that with your credit card number to figure out exactly who you are and where you live. ‘The data is valuable. That was their only point of collection, their only anchor,’ said Cherian Abraham, a mobile payment expert with Experian. That’s one reason retailers like Wal-Mart and Target have rejected Apple Pay,” Pagliery writes. “But adopting Apple Pay is actually a strategic move for better customer tracking in the long run, Abraham said. If shoppers are more attached to their phones, then it’s easier to communicate with them in stores via Bluetooth and Wi-Fi signals. Indeed, several retailers who partnered with Apple told CNNMoney this technology fits perfectly with their high-tech plans. What they lose in credit card data they can make up with loyalty programs.”

Read more in the full article here.

MacDailyNews Take: Don’t shop at stupid retailers. Wait a bit until they smarten up.

[Thanks to MacDailyNews Reader “Dale E.” for the heads up.]

Related articles:
Entrepreneur warns retailers, restaurants, bars: Do not wait, jump on the Apple Pay bandwagon ASAP – November 5, 2014
Apple Pay fuels usage of long-moribund Google Wallet – November 5, 2014
After CVS and Rite Aid blocked Apple Pay, Schubert law firm launches antitrust investigation – November 4, 2014
Sorry, Walmart, CVS, Rite-Aid et al. — Apple Pay and NFC have already won – November 4, 2014


  1. As a business owner, one downside to ApplePay vs MCX Is the continuing high cost of credit card fees. If they could enable a way to cut those, Apple would have them all on board. I operate a small business and it costs me about $25,000.00 per year in credit card fees. (And I have checked around a lot for cheaper prices. I’m right there with the lowest.)

    1. Completely understand the concern. A number of banks (hopefully more and more with time) permit customers to set up their debit cards on Apple Pay. This is a customer choice just as the decision to use debit or credit at check out is a choice. For me, I use debit for pretty much every day to day purchase and credit only for big things like a Mac Pro or BMW or Nikon D3 (or gold Apple Watch in the spring) so I look forward to a time when my bank supports Apple Pay. Indeed, I’ve already gone into the branch to ask.

      I also think the MCX solution is DOA not because it’s not cool or whatever but because in addition to requiring a customer’s checking account info, it requires the customer provide their social security number(!). That is *such* a problem.

      1. My credit union has already announced support for Apple Pay. Pretty excited, and several of my credit cards are supporting it. Just waiting for my contract to end so my wife and I can both buy shiny new iPhone 6’s. Silver 6 for her, space gray for me. Would love the camera in the Plus, but I think it’ll be too big. Probably 6 for me, too.

      1. Yeah, I was shocked it worked at Home Depot. I have a phone case and wallet combined. So when I pulled out my phone/wallet case to get my credit card to swipe, I noticed the Apple Pay/passport app had auto launched. I looked a terminal. Looked like same old terminals as before. Decided to try my thumb. Ding and receipt printed. Cashier was as surprised as me. Looking closer at terminal I saw NFC symbol on LCD screen.

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