Chevron to Add Apple Pay at Gas Pumps (Jan. 5, 2015)
Drivers soon will be able to pay with Apple Pay when filling up at Chevron stations, now that the fuel chain has announced plans to integrate the contactless payment system into its pumps. The company already accepts Apple Pay at many of its Extra Mile and Texaco convenience stores and plans to roll out acceptance to more than 3,000 stores. Chevron announced in a tweet last week it would expand Apple Pay to its gas pumps early this year but followed up saying the timeline for integration is not set.
When Chevron announced last fall that it would support Apple Pay for in-store payments, the company cited the platform’s convenience and security, including fingerprint ID verification and tokenized payments. Meanwhile, customers paying with Apple Pay aren’t required to enter ZIP codes or PINs into a gas pump’s keypad, as they often are when using a plastic payment card. Chevron currently is Apple’s only energy provider partner for Apple Pay, but the fuel industry is eyeing mobile payments. Earlier this year, Gilbarco Veeder-Root, the world’s largest maker of gas pumps and POS systems, announced a deal with Verifone to collaborate on next-generation fuel dispenser models, which will be fully equipped to accept EMV card and mobile-based payments.
But while Apple Pay offers a new option for consumers, it does rely on the existing card payment system, possibly limiting the value proposition of equipping terminals, notes Jeff Lenard, vice president, strategic industry initiatives, National Association of Convenience Stores. “Credit card fees remain the largest expense for retailers selling gas. Fees averaged 5.5 cents per gallon across all transactions at the pump in 2013, the latest year that we have information,” Lenard tells Paybefore. “Every retailer will need to make a decision about whether they want to add Apple Pay as a payment option based on cost to install and consumer demand.”
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