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Apple Said to Reap Fees From Banks in New Payment System

Apple Said to Reap Fees From Banks in New Payment System Bloomberg


Apple Inc. (AAPL) will reap fees from banks when consumers use an iPhone in place of credit and debit cards for purchases, a deal that gives the handset maker a cut of the growing market for mobile payments, according to three people with knowledge of the arrangement.

The iPhone 6 and iPhone 6 Plus, unveiled yesterday, include a new service called Apple Pay that lets users shop with the tap of a finger on a phone, instead of swiping a card. Banks including JPMorgan Chase & Co. (JPM)Bank of America Corp.and Citigroup Inc. (C) agreed to integrate their cards into the system.

Under deals reached with banks individually, Cupertino, California-based Apple will collect a fee for each transaction, said one of the people, who requested anonymity because terms aren’t public. While that gives the tech company a share of the more than $40 billion that banks generate annually from so-called swipe fees, lenders expect to benefit as consumers spend more of their money via mobile phones and other digital devices, the person said.

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Given how much cash Apple has, it only makes sense that they would try to become a bank.

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