Does anyone have a sense for Apple Pay’s debit/credit volume split?
Unclear what the question asks. Are you curious if there’s a statistic out there on the number of debit cards vs credit cards added to Apple Pay? If so that is unlikely to exist.
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Yeah Apple isn’t very forthcoming with much data in general besides headline numbers
And of course, the choice of active card is instantly variable at the user end as is the broader contents of the Wallet.
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With the interchange cap very close 0.3% vrs 0.2% - they probably don’t have much incentive to provide stats (other than to regulators and card issuers) unless they plan to launch their card in the UK market.
I’m pretty sure Apple don’t take interchange, since the 0.2/0.3% is split between bank and Mastercard already iirc
They do take their cut - Apple don’t work for free baby
I don’t disagree with you, I just think they take from elsewhere - not interchange in a market where there is a cap on it.
Where else would they take it from?
Be inventive, could be on card update (replacement)/card add at a fixed fee for the bank. Could be a lot of other things, I imagine.
Could be I suppose, but it isn’t. The model is to become ‘like Visa/Mastercard’ where an absolutely tiny amount as a % is earned on almost all spend.
In the US the figure is 0.15% on cards, and half a cent on debit cards - but it’s likely far smaller here due to regulated interchange: Apple sued over Apple Pay payment system - BBC News
I’m sure I read 0.03% of txn value before, but I can’t find a source for that now. Might have been supposition presuming a tenth of the total amount of interchange fee which could be charged.
Not cards added, but any reasonable assumptions as to Apple Pay’s US volume broken out by debit/credit…of course nothing official exists.
It varies by bank. They all have different deals. But as a general gist, they typically take between 25% and 40% (0.05% - 0.12% of the transaction amount) of the bank’s interchange cut from transactions. Or in some cases, it’s a flat fraction of a penny on debit card transactions.
Not a source I can publicly share to back that up though.
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Was waiting for that, everything is under strict NDA to the point I’m not even sure it’s public information on Apple Pay implementation costs
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It’s only the US figure that is public, and even then, I’m not sure it’s actually official or confirmed, and will only be for one particular bank/credit card.
Indeed. There is far more variance in the interchange from scheme to scheme in the US - a Visa Signature has a lot more interchange charged than a standard Visa Credit.
In the EU/UK this was all stopped in its tracks thanks to the 0.3% interchange fee cap as far as personal cards go - even Amex are somewhat affected over here on that one. Business cards continue to charge a variety of interchange levies tho so I presume again the amount charged here by Apple Pay differs card-to-card.
Apparently Apple charges the participating bank a fee, but not the retailer:
How to use Apple Pay in the UK | Macworld
Sort of - it’s all derived from interchange fees, which are factored in to the fees merchant acquiring banks charge their merchants - but it’s certainly true that they aren’t charged any different for a contactless card payment or a mobile wallet payment (assuming the same underlying card).
At POS I’m pretty sure nothing the cardholder presents would be detectable as any particular form of mobile payment.
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