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Zera who aren't ready to give up a stash of cash. The idea of paying for small purchases with a phone may be a tough sell for people like iPhone user Alfred J. When the transaction was more than $50, cash was used in less than 20% of the payments. A recent consumer survey conducted by the Federal Reserve found that cash represented 66% of transactions under $10 and 58% of transactions under $25. While credit and debit cards represent more than half of the purchases made for retail goods and services in the U.S., cash continues to dominate in small transactions. What's more, the Apple gadgets will work only in stores where merchants have upgraded their equipment to accept the technology. The companies are betting that they will more than make up that cost as the volume of electronic payments increases, these people said.īut the credit-card industry has jumped on technologies that have fizzled in the past. 's credit-card business.Ĭard issuers will pay Apple a small per-transaction fee to participate in Apple Pay, which means they would make less money than they would with a regular swipe at the cash register, according to people familiar with the arrangement. 'If paying by phone is easier for the consumer, it is first and foremost likely to displace cash,' said Jud Linville, who runs Citigroup Inc. That, said industry executives, should lead to more payments taking place over electronic networks, and fewer cash transactions. It also is expected to make credit-card and debit-card transactions faster and easier for shoppers at bricks-and-mortar stores and when making online purchases.
The Apple iPhone6 and Apple Watch promise consumers a more secure way to make card payments at checkout registers.
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