Apple Pay could launch in Canada this fall - report
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 --?such as requiring users to log into a mobile app or enter a PIN code when adding a card to Apple Pay --?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.
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 --?such as requiring users to log into a mobile app or enter a PIN code when adding a card to Apple Pay --?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.
Comments
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.
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!
Let the international roll out begin!
It should be everywhere by the end of 2016.
Time will tell.
I sure hope it happens. That will be the final driver for me to get the Apple Watch this year (vs. waiting for Gen 2 next year).
Will it be in Europe before I die?
It will arrive just after iTunes Radio.
I toured Canada extensively in November of 2014 and I used Apple Pay at numerous Starbucks and truck stops. Much to the amazement of the cashiers, I might add. They had no idea it even existed.
The next millennium then!
This article is misleading. The Canadian banks are going to be letting their members use their cards with Apple Pay. However, Apple Pay has worked in Canada from day one with American bank accounts.
I toured Canada extensively in November of 2014 and I used Apple Pay at numerous Starbucks and truck stops. Much to the amazement of the cashiers, I might add. They had no idea it even existed.
Does it use the same infrastructure as the Tap-to-Pay? Because I've never seen any specific Apply Pay signs either, but Tap-to-pay is everywhere.
edit: or i could just read the article...
I believe it will work anywhere that has an NFC payment point but as long as you have an American bank account with ?Pay authorised.
So it may take about one year to advance Apple Pay to one country outside the USA. If this is the best Apple can achieve then will this mean Apple Pay's rollout across the world is not going to happen for years, if at all?
While I am encouraged to learn that ApplePay might work for US customers travelling in Canada, it is far more important to me that I be able, as a Canadian citizen, to use the service here, in the US, and eventually Europe.
US customers have been able to use ApplePay in the US right from the start, but it isn't really much help or any improvement to me or my fellow Canadians that US customers can use the service elsewhere.
I'm really getting PO'ed by how some sites and news outlets are reporting this news... A LOT of them are saying the following:
That quote is from the Neowin.net article covering this story:
http://www.neowin.net/news/apple-pay-likely-headed-to-canada-this-fall
WTF?!?! There ARE NO VULNERABILITIES!!! This was just WSJ bovine excrement that was later proven to be the fault of banks taking a very lazy and insecure approach to activating their cards on ?PAY!
These news outlets should be sanctioned for libel, I swear!
Top 6? You mean ONLY 6. Generally everyone who has a "real bank" has BMO, TD, CIBC, ScotiaBank(Bank of Nova Scotia), or RBC.
Yeah sure there's HSBC and the various Asian banks, and all the credit unions, but the Credit unions actually are "not a bank" and all use one banking backend called Central 1, but are otherwise independent. Get them on board and you'll see the banks sweat.
Also the authentication problem is solved MUCH MUCH easier in canada. Just let the iphone read the NFC chip on the Canadian bank/debit/credit card in addition to the photo of the card. Obviously the rest of the technology already exists.