Card Forum: Contactless

The big box retailer's move comes amid a broader decline for the traditional payment option.

The rocky journey and abrupt end of the technology company's fledgling buy now/pay later service underscores ongoing challenges facing fintechs that offer point-of-sale installment loans, and how banks may benefit from the changing BNPL ecosystem.

Amazon Pay — which provides one-click checkout on thousands of e-commerce sites — has added support for Citi Flex Pay, Citigroup's point-of-sale credit card loans, as competition for buy now/pay later customers expands to digital wallets.

The tech giant's planned savings account would receive deposits from the Apple Card's Daily Cash rewards, encouraging users to spend more on Apple's credit card as a way to build their balances.

In a twist on its Goldman Sachs-issued credit card, the technology giant will directly underwrite and hold its buy now/pay later loans through its own subsidiary, cutting out intermediaries.

"Apple may have restricted competition, to the benefit of its own solution Apple Pay," Margrethe Vestagar of the European Commission said. It's an accusation Apple's fought many times across the globe.

A community development financial institution in New York City says it's the first U.S. bank to launch a contactless payment ring. It's betting that novelty will be part of the draw.

Tap to Pay on iPhone turns any of the tech giant's recent smartphones into a card reader, but since Apple doesn't provide its own merchant services, it stops short of becoming a direct threat to acquirers and payment facilitators.

Several rail and bus lines are working with Interac, the country's debit network, and its bank partners to allow the new fare payment option in addition to credit cards. They see the collaboration as a way to expand ridership among tourists and low-income residents.

The shift away from human contact increased the popularity of kiosks, ATMs and other technologies that allow for more flexibility in payment methods.

Card networks are working with the Metropolitan Transportation Authority to build on touchless fare collection for marketing and commerce.

The technology holds great promise for financial services, but it could be just as powerful for scammers looking to break payment card encryption. Visa, Mastercard and others are already building new defenses.

Apple Inc. is working on a new service that will let consumers pay for any Apple Pay purchase in installments over time, rivaling the buy now/pay later offerings popularized by services from Affirm Holdings Inc. and PayPal Holdings Inc.

The company’s Tap to Phone technology exists in 30 countries. Visa is piloting the program in the U.S. with a six-city campaign that brings discounts, offers and grants to Black-owned small businesses.

During lockdown, adoption of services like mobile order-and-pay, biometric authentication, contactless fare collection and digital currency accelerated. Consumers have more options than ever — and their behaviors will guide further innovation.

Apple will allow some iPhone users to scan their driver's license and protect it with the same security used for payment cards in Apple Pay.

The EMV specifications technology body has revised its requirements to ensure a consistent payment experience for cards, smartphones and wearables.

There are too many security, usability and reliability risks for QR codes to be the main driver of transit payment. NFC is likely better, says Carlypso Networks' Philippe Vappereau.

The pandemic spurred millions of merchants to add contactless payments within a year, pushing the number of global stores accepting contactless to 90%, according to new data from Mastercard.