"Apple Inc. will reap fees from banks when consumers use an iPhone in place of credit and debit cards for purchases," reads the article, citing 'three people with knowledge of the arrangement.'
Apparently there are separate deals for individual banks, although the parties involves are keeping hush on the details for now. Apple launched its Apple Pay e-wallet service yesterday which allows iPhone 6/Apple Watch owners in the US to make NFC-powered payments at contactless-friendly brick-and-mortar stores.
The firm's CEO Tim Cook slammed the current system of physical cards as outdated, saying 'we're totally reliant on the expsed numbers, and the outdated and vulnerable magnetic interface - which, by the way, is five decades old - and the security codes which all of us know aren't so secure."
Several financial firms are already on board with the Apple pay service, including JPMorgan, Bank of America, and American Express.
"JPMorgan Chase has been pleased to collaborate on Apple Pay to create a better, faster and safer payments system, which puts the customer first. Everyone wins," says Jamie Dimon, CEO of JPMorgan Chase & Co. Brian Moynihan, BoA's CEO called Apple Pay an 'exciting move' that would be more 'simple and convenient' for customers.
Ken Chenault, CEO of AE, described Apple Pay as 'innovative thinking', and said the firm was 'excited to work with Apple' over the new system. Check out T3 editor Matt Hill's hands-on with the new iPhone 6, or head over to the Apple Pay story to see what all the fuss is about.
