For every dollar spent on the iOS App Store, Apple makes thirty cents, but if you expect Cupertino to be collecting 30% of every buck spent on Apple Pay, you’re crazy. The world of finance is much more nuanced — and ruthlessly competitive — than selling apps: Apple will have to settle for just fifteen cents for every $100 spent. But that’s actually a lot of money in financial terms.
According to an overview posted by the Financial Times, Apple and its banking and credit card partners are offering lower per-transcation fees in the hopes of making up the percentage in later on volume.
When it comes to running credit cards, banks charge different fees based on risk. If a credit card is being scanned, for example, retailers will pay a lower rate in commission on the sale than if only the card number was run, i.e. the difference between running your card at a store and typing it into a web form.
However, because Apple Pay depends on NFC and is fully integrated into the iPhone 6, banks were able to cut Cupertino a better rate than normal. And while that rate might not be the 30/70 split Apple is used to, it’s still pretty good as far as credit card companies are concerned: 15 cents of every 100 dollars spent. But tgose cents will add up quickly.