Without the consumer demand that Google/Apple Pay (and later coronavirus) created, we still probably wouldn't have widespread tap-to-pay.
I honestly can't remember the last time I actually used my debit card to buy anything. With tap limits of $100 per transaction and $200 per day, 99% of my regular purchases can be made through my phone. It's very rare I take my wallet out of the car.
Similar to stuff like the common free international roaming, SEPA is something that the EU massively fought for the consumers against the entrenched players.
Basically it pays to be backward with these things - you skip many bad solutions and can learn from others. Our bank system was reconstructed almost from scratch in early 90s so it's quite modern now.
According to our sales guys who say that US banks are the worst when it comes to new technology, Australian banks are the best apparently. Apparently there were some government initiatives to force the banks to use new technology, some really leaned into it and even changed entire management layers.
But are somehow fine with crappy magstripe easily cloned cards. Bit odd how they judge risk
(Really!)
I'm not old enough to have had to do that anywhere else - 'Chip & PIN' was required in the UK from 14 Feb 2006; I'm not sure how long before that it became available/widely used.
Some places used to check IDs though.
We see this in other systems like NYC’s metrocard VS London’s Oyster. Metrocard was an early system that works reasonably well. Now the MTA is deploying a new modern system as metro gets near its planned lifetime.
I think the USA has been far more innovative with credit cards that give rewards. Many of my EU friends complain they can’t get more airline points, etc with their cards.
So did many other places.
> I think the USA has been far more innovative with credit cards that give rewards.
US credit card schemes charge merchants massively more, so yes, these fees can then be used to give "rewards". EU cards have lower rewards because the fees are limited by law.
It's not something to be proud of. You're paying higher prices as a result.
It’s weird though that 3x as many Western Europeans move to the USA than the other way around.
I think you do have higher incomes, generally, and a lower tax burden. Fewer government services too of course. Not sure that's much to do with credit card reward schemes though :)
The UK had well developed credit card infrastructure before Chip and Pin too. This is not the reason.
The US market was just massively more resistant to change, and was able to put a stop to the banks' liability shift tactics.
Apparently they pay with their phone. They scan a QR code and get the bill on their phone... or something. I've never experienced it myself.
But they always say that doesn't count. And I see why. You still gotta wave down a waiter, ask them to go fetch a machine, wait for them to come back, potentially sending them back because they split it incorrectly. That's not the same as scanning a QR code on the table, having it load up your bill, splitting it if needed, and making the payment. If that works as well as I imagine it to, that could all be done in the time it takes to wave down the waiter.
Since it lacks a second authentication factor the compromise is to limit how much can be spent if the card is stolen.
The US could skip chip and pin if it switched directly to contactless mobile payments.