Google has officially dropped transaction fees for credit card establishments engaged with Android Pay, the company’s highly anticipated mobile payments service.
The announcement could force other businesses offering similar services to reconsider their terms with participating credit card issuers. Banks that are unhappy with sharing fees could use Google’s move as an example to gain the upper hand in future deals.
As a basis for comparison, financial companies on board with Apple Pay allow Apple a 0.15 percent share of the total value per credit card transaction. The tech giant collects a half-cent for each purchase made using a bank debit card.
“This is a bold move on behalf of the banks,” said Rick Oglesby, head of research at Double Diamond Payments Research. “They’re now taking a stand against similar deals. It could easily turn into a standoff.”
Payment Week, June 8, 2015
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