AppleInsider Staff
Apple is preparing to launch its NFC-based mobile payments service in Canada this fall, a Friday report says, marking the first time Apple Pay would be officially offered outside of the United States.
Apple is reportedly in discussions with Royal Bank of Canada,Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada, according to the Wall Street Journal. That group makes up the top six largest banks in Canada.
The iPhone maker is said to be targeting a November launch, but negotiations have not gone smoothly. Canadian banks have balked at Apple's "onerous" fee-sharing proposals, and are worried about customer authentication problems that have plagued their U.S. counterparts.
Apple could be asking for fees as high as 25 basis points per transaction, compared to the 15 basis points it takes from partners in the U.S.
To address security issues, the Canadian banks have banded together and asked consulting firm McKinsey & Co. to identify new account security options that could include "secondary authentication" mechanisms. Many U.S. banks have adopted similar provisions — Â such as requiring users to log into a mobile app or enter a PIN code when adding a card to Apple Pay — Â while others require customers to call the bank's contact center personally.
Apple is also believed to be pursuing a deal to launch Apple Pay in China, but is reportedly running into similar issues.
In a separate report, the Journal indicated that banks may also be worried about so-called "disintermediation." They feel that Apple may usurp their relationships with their customers, making retention more difficult.
Malcolm Owen
William Gallagher
Charles Martin
Christine McKee
Wesley Hilliard
Andrew Orr
22 Comments
About darned time!
Finally - Canadian Banks on Apple Pay - welcome to the modern world of technology Canadian Banking!!! Now how about the CRTC does something about getting us Apple Radio or we can get access to HBO Now or the real Netflix with all of the up to date programming. Alas, one can't expect too much too fast up here in Canada
This sort of thing can't come too soon. I had one of my cards compromised while vacationing in Florida - 2000 km from home. As far as I can figure out, on one occasion when I paid for a meal in a restaurant, the card was taken to the card machine at the back of the establishment, and both the card number and the CVV code were copied. The next morning someone from the same region tried make about $4000 of online purchases. Fortunately, the card issuer was extremely vigilant and I got a call from their security department while I was walking on the beach not long after. Chip and PIN is more secure, and is widely used in Canada and Europe - can't remember the last time I was asked to swipe my card in either region - but even that can be compromised. As I understand it, ApplePay is even more secure than chip and PIN.
Hopefully, the UK will follow soon. Does anybody know what takes the banks so long? I thought that the U.S. And UK banks were pretty closely aligned and would follow their lead almost straight away. Or at least see it as a race to get it up and running to attract customers over, especially with the impending launch of the ?Watch. Maybe it's just me being impatient ????
I don't think anyone who wants to use Apple Pay will be bothered that they may have to phone their bank, or use a mobile app once to confirm their identity, or get a text message and enter a code number. This action is minuscule compared to the benefits of using Apple Pay. If a bank makes you do this, no one will think twice about doing it.
Now, when are we getting Apple Pay in the UK? Surely, we're ready for it? We have contactless terminals all over the place!