Do merchants pay fees on Apple Pay and Google Pay?

When the wallet holds a card, the payment runs on card rails, so the merchant pays the usual card costs: interchange, scheme fees and the acquirer's markup. Any extra wallet-related fee depends on the PSP's pricing.

Who pays what

• Merchants: the same cost components as any card payment, set by the card type, region and provider pricing.
• Issuers: in some markets, issuers pay the wallet provider a fee on transactions made with their cards through the wallet.
• Cardholders: no fee for using the wallet.

Is a wallet payment priced as card-present or card-not-present?

In stores, a tap with a phone is a contactless card-present payment. In apps and on websites, wallet payments are card-not-present, though the cryptogram and device authentication strengthen them.

Indirect effects on cost

Wallet payments often bring fewer fraud losses and fewer disputes for unrecognized transactions, and they can raise conversion on mobile. These effects can outweigh any small pricing difference.

Wallets that do not hold cards

Some wallets use bank accounts or stored balances. Their pricing follows the rules of that method, not card pricing.

What it means for payment operators

For you, wallet payments are card payments in your pricing and reconciliation. Mapping them correctly in fee reports, and showing wallet share per merchant, helps you price fairly and explain costs to merchants.