![Apple logo ob window](https://retailwire.com/wp-content/uploads/APple-Photo-by-Trac-Vu-on-Unsplash-scaled.jpg)
Photo by Trac Vu on Unsplash
Apple Expands Apple Pay Features
June 16, 2024
Apple has long been seen as a disruptive force in the banking sector, but the relationship between technology giants and traditional financial institutions is evolving into a more symbiotic one. This week, Apple made several significant announcements at its Worldwide Developers Conference in Cupertino, California, showcasing enhancements to its digital wallet, Apple Pay. These updates signal a deepening partnership between Apple and banks, offering mutual benefits in the competitive landscape of financial technology.
These developments are particularly advantageous for banks, as they bring their credit card products into more facets of retail and e-commerce, helping to drive customer spending and maintain competitiveness against emerging payment methods. However, these benefits come at a cost. U.S. banks have agreed to pay Apple a fee of 0.15% per credit card transaction made through Apple Pay.
Another enhancement to Apple Pay is the option for users to pay for purchases using their card rewards points. This adds significant value to loyalty programs and provides banks with another opportunity to engage customers and capture transactions. Discover Financial Services, Synchrony, and Fiserv’s issuers are set to be the first to offer this feature.
One of the standout features introduced is the ability for banks to offer “buy now, pay later” (BNPL) installment payments through cards loaded into Apple Pay wallets. This new functionality will allow users to convert their card purchases into installment plans directly at the point of sale. Initially, major players like Citigroup, Synchrony Financial, and various Apple Pay issuers using Fiserv will participate in this rollout. For banks, this integration is a strategic win, enabling them to compete more effectively against other BNPL providers, including Apple’s own offerings.
Additionally, Apple is expanding the functionality of Apple Pay to include payments via third-party browsers using a scannable code. This means that users can make payments across the web with the cards stored in their iPhone digital wallets, further extending the reach of Apple Pay in the e-commerce space.
Recent News
Morgan Stanley Expands Latin American Investments
Morgan Stanley is ramping up its investments in Latin America amid rising geopolitical conflicts, recognizing the region’s growing economic importance.
National Smoothie Day Deals
As the summer season begins to heat up, many people will opt to cool down and enjoy a delicious treat with a refreshing smoothie.
Hertz Launches $750 Million Debt Offering
Hertz Global Holdings Inc. is launching a $750 million debt offering to strengthen its financial position following issues with its electric vehicle fleet.
Former OpenAI Chief Scientist Ilya Sutskever Launches New AI Venture
One month after departing OpenAI, co-founder Ilya Sutskever has announced the launch of a new company named Safe Superintelligence Inc.