Apple Pay

Payment services from tech firms like Apple and Google risk squeezing out traditional banks and need monitoring. Authorities in France raised the concern that these firms can make money from these services but avoid much of the regulation, Bloomberg News reported.

The French authority also highlights access to near-field communication on smartphones used for contactless payment, an issue that has already triggered EU and Dutch antitrust probes and potential legislation to respond to banks’ complaints that Apple unfairly blocks their access on its devices. The companies that the French agency calls “les BigTech” are armed with “considerable financial power” to invest in new technologies and will have lower marginal costs compared to banks. Access to large volumes of data and processing power may allow them better assess customers financial health and offer them targeted services, the authority said. Integrating payments in other services allows them to offer a “customer journey” that can’t be matched or replaced easily by competitors, the authority said

Those in the Bay Area can use Apple Pay when using any form of transit that is accessed with a Clipper card. The feature now works on BART, Muni, Caltrain, and the ferryTechCrunch reported.

As noted back in February when this was first confirmed as on the way, Clipper works with Apple’s “Express Transit” feature. That’s just a fancy way to say that you can tap to pay with the digital Clipper card without first needing to punch in your phone’s PIN or using FaceID. On certain newer iPhones, it also lets you keep using the Clipper card for a few hours after your battery has died; a wonderful thing in a pinch, but probably not something you want to rely on regularly.

The UK limit on single contactless transactions  – those that you can simply tap your card to make, no pin or signature required – has increased to £100. However, as Ben Lovejoy at 9to5 Mac noted, this will have little impact on those who want to use Apple Pay to purchase goods as the limit was already significantly higher than that. (In the U.S. of course, the situation is different with different ceilings on when a signature etc is required.)

Apple Pay uses a more sophisticated form of contactless payment reserved for mobile wallet devices that have biometric authentication. With this protocol, banks and retailers can set a much higher payment limit, or even have no limit at all, because the device verifies the identity of the user via Face ID or Touch ID in the case of an iPhone, or the PIN you entered on an Apple Watch when putting it on in the morning. When I asked at the time of launch, my bank hinted that its own limit was £750 ($1,050), and certainly I have made three-figure purchases using Apple Pay. Some people report successfully using Apple Pay for mid-four-figure purchases.