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Required Fintech Reading: Sept 8-12 (Apple Pay Edition)

Clearly, this week's topic was Apple Pay. Are you curious about how Apple's new product will affect banks and credit unions? We've gathered the info you need to stay in the know.

Apple Said to Reap Fees From Banks in New Payment System
Bloomberg’s @Elizabeth Dexheimer on Apple's arrangement to secure a piece of the growing mobile payments market. 

The arrangement builds on the existing fee structure for credit and debit cards in the U.S., according to the people [familiar with Apple Pay]. Merchants there typically pay fees totaling about 2 percent of the purchase price for credit-card transactions. The swipe fees, also known as interchange, help card-issuing banks cover fraud costs and fund reward programs.”

Apple Pay Enlists Payment Giants to Address Security Concerns
American Banker’s @Bailey Reutzel on new tokenization systems Apple plans to use for added layers of security.

First Data, TSYS and Visa have announced their tokenization technology will support Apple Pay, which will enable the upcoming iPhones and Apple Watch to make contactless payments at a variety of retailers from cards issued by many of the top banks. Security is vital to Apple's pitch, particularly because the company is still working to calm consumers' worries about the safety of its iCloud service, which was targeted as part of a leak of nude celebrity photos last week.”

Is Apple Pay a Banking Trojan Horse?
The Financial Brand’s @Jim Marous on the uneasy relationship financial institutions may have with Apple Pay.

"A more subtle, yet potentially game changing observation mentioned by Karen Webster, CEO of Market Platform Dynamics, is how Apple chose to name its payments capability Apple Pay as opposed to iPay or iWallet. “Apple wants the consumer association with Apple first and foremost. Sure, card brands and network brands are visible, but Apple Pay will make every other brand subordinate to it because that is how the consumer and the merchant will view it,” said Webster."

Apple Pay — It's Complicated
Experian's @Cherian Abraham on the full range of benefits and complications that come with Apple Pay.

"A Chase card in Passbook does not mean the customer can tap and pay directly from the Chase banking app. Apple tightly controls the payment experience. Simple as that. This should cause much concern among the Apple Pay partner banks – for whom enabling payments outside of Apple Pay in iOS is OFF THE TABLE."

Why Banks Are Buying Into Apple Pay
American Banker's @Mary Wisniewski on the incentives for banks in Apple Pay.

Quote from Richard Davis, the CEO of U.S. Bancorp: "It doesn't matter if you're using your phone or if you're using a wand … you still need a merchant to transact the money and you need a bank to move those items between the two. So the merchant acquirer doesn't lose its position." 

U.S. Banks Have Positive Image for First Time Since 2007
Gallup Economy’s @Rebecca Riffkin on the yearly Gallup poll measuring American's view of industries like banking and real estate.

A collection of crucial fintech charts
Money Summit illustrates industry trends with a series of charts and quotes from industry leaders.