Apple is eligible to receive fees from banks when customers use the company’s newly announced Apple Pay mobile payment system.
Citing “three people with knowledge of the arrangement,” Bloomberg reports:
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.
Apple Pay allows users to easily pay for goods and services at online and brick-and-mortar stores with just a tap of a finger on the iPhone 6, the iPhone 6 Plus, or the upcoming Apple Watch. Banks including Bank of America, Capital One Bank, Chase, Citi, and Wells Fargo have partnered with Apple to have the cards issued by them integrated into Apple Pay.
And as part of the partnership, the banks have agreed to pay certain fees to Apple every time their integrated cards are used with Apple Play. How much these fees are is currently unknown, but they’re likely to vary and depend on the value of purchases.