7 Haziran 2015 Pazar

Android Pay Transaction Fee Might Be Waived Due To Standardized Security

Mobile payment will change the way that we make purchases in the future. With the mobile payment, all we need to do is to tap our smartphone to the payment terminal which is normally placed in the cashier. The only requirement is that our smartphone and the payment terminal must support NFC (Near Field Communication) in order for it to work. There is currently two big technology company which is pushing the mobile payment service into the market; they are Google with Android Pay service or Apple with Apple Pay services.


Apple will collect 0.15% of the transaction value for credit card transactions whereas for debit card transaction, it will collect 0.5%. It seems like not much, but then if there are millions of users, it can sum up to a big money. Android Pay, on the other hand, might not collect any transaction fee. It is because Visa and MasterCard recently is taking steps to standardize their tokenization security system which eventually preventing payment services to charge fee to its issuers.


The tokenization security works such that, it will generate a unique string of data to authenticate a customer in front of a trusted party. Therefore, the merchant will not know sensitive information about the customer when the card is swipe at the payment terminal. It is more secure in this way. Therefore, some of you might be wondering, how Google benefited from this service if the company does not charge transaction fee? The answer is from the advertising and marketing. Google plans to introduce coupons or promotions to attract users to use the service and it is also will bring more indirect income.



Android Pay Transaction Fee Might Be Waived Due To Standardized Security

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