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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

Source: http://www.bloomberg.com/news/2014-09-10...

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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