With changes in the fee structures banks have set up for tokenized services, banks have made those transactions — which are the security backbone of Apple Pay and Android Pay — free.
For Google, this means that unlike Apple, it won’t be making any money from its users paying with a cell phone instead of plastic. In the case of Apple, they’ll continue to collect fees for transactions for the length of their contracts. (The Wall Street Journal reports these agreements will be in force for another two years until they’ll be renegotiated.)
However, this could mean that Apple Pay will not be coming to other countries because of the lack of a tokenization fee. There’s also speculation that Android Pay’s lack of fees could be attractive to card issuers — the Mountain View company also plans on partnering with with those issuers and retailers and offering coupons and loyalty reward programs.