The Apple TV+ thread has been discussing low Paywave uptake and how it effects offering such as Apple Card+ in New Zealand.
Thought it was best discussed here...
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Too expensive.
I understand that NZ already has much more expensive merchant fees (paid by the retailer to the credit card company) than comparable countries including Australia. When you pile on top of that the extra fees for Paywave, many retailers, particularly small ones, say it's just too much of their margin going to the credit card companies.
See https://www.tvnz.co.nz/one-news/new-zealand/high-paywave-fees-banks-making-goods-and-services-more-expensive-everyone-retail-nz-says?variant=tb_v_1
"Retail New Zealand says banks and credit card companies are charging Kiwi retailers much more for contactless and 'Paywave' transactions than other countries - and it is pushing up the price of goods for everyone.
The organisation says it has heard of retailers in New Zealand being charged up to 3.5 per cent transaction fees, with an average of 1.6 per cent - the average in the UK is 0.2 per cent."
In most settings, Paywave is faster and more reliable than swipe or card-insert, but it seems not enough so to be worth the money to the retailer.
Easily fixed 😂
Edit: add URL & quote
Don't think it's a low update. Many retailers and small businesses have been bitten with profit squeeze once the merchant fees come in so are going backwards and dropping it (KFC and BK - Drivetrhough may still have it for speed, but counters removed)
Although a branch near me has re-instated it counterside again
I won't be surprised if we only see big turnover (Warehouse, Supermarkets, Servo) being some of the only to take it
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12210463
20K of fees in a 15 month period is scoff level.
/edit and SNAP!. I type to slow
It's those merchant account fees. Not just an issue for Paywave, but for credit cards in general. You have to be a big player to be able to deal with those fees without increasing prices for customers.
I've spoken with many retailers who get annoyed at the ridiculous cut demanded for the 'privilege' of having a pay-wave machine.
It is quite frankly appallingly greedy to demand an (additional) 2% cut (?) when there's no additional benefit to the retailer, you're sure as hell not going cause them to get an extra 2% in sales so it's not justified purely from a monetary point of view.
Correct me if I'm wrong but don't all current bank provided contactless payment cards go through the Credit/Debit Card networks rather than EFTPOS? NZ Retailers already have a heavy bias against these networks due to much higher fees in the first place. Just look how many retailers reject American Express cards already.
Wonder if there is a contactless EFTPOS variant planned?
I never go with Paywave as a payment option when I'm at my local. I know and have heard stories of the merchant and processing fees and honestly I'll just use the chip instead.
Completely understand why some retailers don't use paywave and I don't blame em.
The local shop up the road use to have paywave but got it removed as they were getting hit with 200 - 500 a month in fees just for that alone (so they told me when i asked about it). They would rather wait the extra 10 seconds for a customer to put in their card and pin. I think more retailers would have it if it was a flat fee each month or per transaction (i.e. 5 cents a transaction).
I love pay wave but I totally understand why shops don't have it with the fees that are charged.
My views (except when I am looking out their windows) are not those of my employer.
tripp:
The local shop up the road use to have paywave but got it removed as they were getting hit with 200 - 500 a month in fees just for that alone (so they told me when i asked about it). They would rather wait the extra 10 seconds for a customer to put in their card and pin. I think more retailers would have it if it was a flat fee each month or per transaction (i.e. 5 cents a transaction).
I love pay wave but I totally understand why shops don't have it with the fees that are charged.
The bit i hate is walking into a shop and having it all like "NO PAYWAVE"
One thing to not have the hardware, but to disable it because the fees are higher makes sense too.
IMO Creditcard providers here need to get with the times and bring fees right down.
Travelling through AUS is such a breeze, paywave is literally everywhere. I assume fees there are far more realistic.
#include <std_disclaimer>
Any comments made are personal opinion and do not reflect directly on the position my current or past employers may have.
As has been said many times. PayWave is not hiking up the price of fees. PayWave (or the other contactless payments) are all Credit Card based transactions, so attract the usual merchant fees. The current EFTPOS system does not have these same fees, but currently is not contactless capable. A long overdue upgrade of the EFTPOS system is needed to allow Contactless EFTPOS payments.
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Screw Visa and their 3% tax so I use good old Eftpos whenever possible. Apple pay is even worse - 5%.
Seem to be sailing against the wind based on the posts so far, but I love it. I don't care what it costs stores, it saves me time, makes my life easier and it's 2019 so if they don't give me what I want, I just don't go back.
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