Apple Pay will make impulse buys even easier

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Apple Pay's ease of use may lead to increased impulse buying -- and that's exactly what Apple's hoping for.
Apple Pay's ease of use may lead to increased impulse buying -- and that's exactly what Apple's hoping for.

More and more retailers are already using NFC terminals, but there is an additional reason why those without them might want to hurry up and get onboard: because Apple Pay could lead to more impulse purchases.

That at least seems to be the rationale of Walt Disney World, according to a new report.

A partnership with Walt Disney World was announced on Tuesday, and as per About.com theme park expert Arthur Levine, Disney is convinced it’s going to prove a great way of upping the amount customers will spend.

“It is surely hoping that by giving visitors the ability to use its cash-less system anywhere across the Disney World campus, they will increase spending, especially on impulse purchases,” Levine says.

Apple gets a cut of every Apple Pay purchase you make

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Apple's partners went to extremes to keep news of Cupertino's mobile payments entry quiet.
Apple Pay will replace your wallet, as well as giving Cupertino an iTunes-like slice of every sale.

Apple might be a hardware first company which creates software only to drive sales of its physical devices, but that doesn’t mean it can’t earn a bit of money from its services, right?

According to a new Bloomberg report, Apple will earn a fee every time its newly-announced Apple Pay service is used to make a purchase.

The deals were reportedly brokered by Apple with each bank individually and will give Apple a sizeable share of the $40 billion generated by banks each year from so-called swipe fees for credit card payments. JPMorgan, Bank of America and Citigroup have not yet disclosed the terms of the deal.

Former Apple exec says mobile payments are all about selling hardware

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Shareholders are getting a huge payday from Apple.
Jean-Louis Gassée thinks mobile payments are, first and foremost, a way to sell hardware.

Former Apple exec Jean-Louis Gassée has posted a new edition of his always enjoyable Monday Note blog, arguing that Apple isn’t intending to disrupt banks and credit card companies with its entry into the mobile payments world.

It’s an interesting read, and makes a whole lot of sense: pointing out that Apple’s mobile payment drive is simply an extension of the company’s current strategy.

Token technology will make Apple’s mobile payments extra secure

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Apple Pay's ease of use may lead to increased impulse buying -- and that's exactly what Apple's hoping for.
Apple could use both NFC and tokenization as part of its mobile payments drive.

In addition to near field communication (NFC) as part of its mobile payments drive, Apple will be incorporating something called “tokenisation” technology, according to sources who spoke with Bank Innovation.

As the report explains, “Financial institutions — card issuers and networks — prefer token technology because it replaces primary account numbers, those 16-digit card numbers on the front of credit and debit cards. Instead, the tokenization technology uses complex codes that are easily transmittable over the air and between devices, but that are used only once, so even if they are intercepted, are of no use to fraudsters.”

Apple has been investigating tokenization technology for several years, with multiple patents relating to the process dating back as far as 2009.