Apple Pay to reportedly land in UK by summer
A report on Saturday claims Apple is finalizing plans to launch Apple Pay in the UK later this summer, which would mark the in-house payments service's first international offering since rolling out in the U.S. last October.
Sources familiar with the matter told The Telegraph Apple intends to announce upcoming UK Apple Pay availability at the Worldwide Developers Conference on Monday, with an official start of services to follow in about two months.
According to the publication, contactless spending in the UK jumped to 2.3 billion pounds (about $3.51 billion) last year despite a generally uninterested consumer base. Conflicts within the finance and mobile industries have resulted in disjointed platform offerings, but with a 40-percent share of all UK smartphone sales, the Apple Pay-enabled iPhone could be catalyst for change.
Importantly, many UK retailers field point-of-sale terminals equipped with NFC transceivers capable of communicating with iPhone and Apple Watch. Infrastructure was an issue when the service debuted in the U.S., as a good portion of merchants were in the process of rolling out compatible POS hardware.
Some companies in the UK -- and beyond -- are already accepting Apple Pay in an unofficial capacity. For example, overground train and Tube operator Transport of London is processing Apple Pay transactions for American tourists through existing Oyster smart card gateways.
Although Apple has yet to provide a detailed timeline, it's a foregone conclusion that Apple Pay services will be extended beyond U.S. borders. Initial evidence came last December in the form of job listings calling for interns to help with a rollout in the EMEIA region. Subsequent reports specific to the UK suggested Apple Pay would launch in early 2015.
Sources familiar with the matter told The Telegraph Apple intends to announce upcoming UK Apple Pay availability at the Worldwide Developers Conference on Monday, with an official start of services to follow in about two months.
According to the publication, contactless spending in the UK jumped to 2.3 billion pounds (about $3.51 billion) last year despite a generally uninterested consumer base. Conflicts within the finance and mobile industries have resulted in disjointed platform offerings, but with a 40-percent share of all UK smartphone sales, the Apple Pay-enabled iPhone could be catalyst for change.
Importantly, many UK retailers field point-of-sale terminals equipped with NFC transceivers capable of communicating with iPhone and Apple Watch. Infrastructure was an issue when the service debuted in the U.S., as a good portion of merchants were in the process of rolling out compatible POS hardware.
Some companies in the UK -- and beyond -- are already accepting Apple Pay in an unofficial capacity. For example, overground train and Tube operator Transport of London is processing Apple Pay transactions for American tourists through existing Oyster smart card gateways.
Although Apple has yet to provide a detailed timeline, it's a foregone conclusion that Apple Pay services will be extended beyond U.S. borders. Initial evidence came last December in the form of job listings calling for interns to help with a rollout in the EMEIA region. Subsequent reports specific to the UK suggested Apple Pay would launch in early 2015.
Comments
Hooray! Can't wait to get this in my shops, and use this myself.
Go Apple Go, Go, Go!
BTW, AI, it's 'Transport for London'.
There's actually a lot of interest and buzz around contactless considering both MasterCard and Visa have it equipped on pretty much every debit and credit card for a couple of years now. There's plenty of retailers and especially small transaction merchants that have been using it for a long time.
The major difference Apple pay is bringing to the table is the fact that there's a layer of security in the users fingerprint. As it currently stands you just tap the card and you're away, Apple's entrance might ecourage the users who are uncomfortable with zero security but for everyone else, Apple pay is actually clunkier and more time consuming than just tapping a card. I certainly won't use it instead of my contactless card but it'll be a nice backup to have.
Works out well. I'd decided I wouldn't upgrade my iPhone (5S) until ?Pay was operational, so now I'm happy to wait for the 6S.
Hope the banks start announcing too, as I was thinking of switching accounts as well.
As it currently stands you just tap the card and you're away, Apple's entrance might ecourage the users who are uncomfortable with zero security but for everyone else, Apple pay is actually clunkier and more time consuming than just tapping a card. I certainly won't use it instead of my contactless card but it'll be a nice backup to have.
That might be true of some, but my phone is always either in my hand, or in one of my more accessible pockets. My card is inside my wallet which is awkward, and I tend to stash it away (and some people will keep in a bag). I think the phone will be easier for me, and at least a few others.
Plus, ?Watch.
The major difference Apple pay is bringing to the table is the fact that there's a layer of security in the users fingerprint. As it currently stands you just tap the card and you're away, Apple's entrance might ecourage the users who are uncomfortable with zero security but for everyone else, Apple pay is actually clunkier and more time consuming than just tapping a card. I certainly won't use it instead of my contactless card but it'll be a nice backup to have.
I think you're right. Unfortunately to unseat an incumbant, a new product has to be a lot better, it can't just be a little bit better or people won't be bothered to learn it. And Apple Pay is a lot better than the swipe and sign credit cards in the US but not a lot better than the contactless chip and pin cards in Europe.
I think you're right. Unfortunately to unseat an incumbant, a new product has to be a lot better, it can't just be a little bit better or people won't be bothered to learn it. And Apple Pay is a lot better than the swipe and sign credit cards in the US but not a lot better than the contactless chip and pin cards in Europe.
Having used both contactless chip and pin cards in Canada, as well as Apple Pay, I can state that there is a huge security advantage to Apple Pay.
The old magnetic strip technology is easily cloned. From a modern standpoint its time has come and gone.
The US is in the process of implementing chip and sign. What does this improve? The chip proves physical possession of the card, but the weakness is the signature which of course can be easily forged.
Chip and pin proves physical possession of the card, and the knowledge of the card-holder who hopefully is the only one that knows the pin code.
Contactless card proves physical possession. However, this is no more or less secure than chip and sign.
Apple Pay is actually far more secure. Physical possession of the iPhone or Apple Watch is not sufficient. It must be unlocked by the device holder. This makes it more secure than other contactless payment, and just as secure if not more secure than chip and pin.
Uh, what about Canada? Hello?
Apple Pay works everywhere that contactless payment is supported. I've used it in Canada, a whole lot. It works flawlessly.
The holdup is the legal banking agreements that allow card enrollment, and of course, squabbling about fees. So when the big Canadian banks (TD, BoM, CIBC, ScotiaBank, etc...) finally make peace with Apple, then and only then will Apple Pay become available to Canadians.
Of course in the topsy-turvy world of cross-border banking, TD Bank (US) fully supports Apple Pay - but hasn't started supporting chip and anything for ATM cards. TD Canada Trust of course supports chip and pin, but not Apple Pay.
You can easily recognise contactless terminals because they show a little sign, like a WiFi logo on its side, either on the hardware or on the screen of the terminal. Granted, you will have to make a decision whether to pay by cash or card before you get to see the terminal.....
I think you're right. Unfortunately to unseat an incumbant, a new product has to be a lot better, it can't just be a little bit better or people won't be bothered to learn it. And Apple Pay is a lot better than the swipe and sign credit cards in the US but not a lot better than the contactless chip and pin cards in Europe.
I feel your post warrants some additional explanation for people that may not know the detail of the European system (my apologies):
First, Apple Pay does not replace credit cards and debit cards - you still use the same companies and banks, only that you use them via the iPhone instead of having to take out your actual card.
Second, Chip and PIN and Contactless are two different things:
- Chip and PIN means you stick the card into the reader instead of swiping it, and you punch a PIN into the reader instead of signing a piece of paper. Transactions are done much faster and more secure as PINs are harder to steal than signatures which, hail the genius that came up with this, are on the back of the card.
- Contactless means that for transactions under a certain amount (£ 30 in the UK) you just tap the card - no sticking nor swiping, no signature nor PIN, i.e. even faster transactions. You cannot use Contactless & PIN; Contactless is purely for small transactions.
Third, ApplePay brings three additional functions that I believe are significant and that I really look forward to:
- Paying with Apple Watch means I don't have to take out my wallet to take the tube - I can just tap my Watch on the Oyster reader - that's super convenient
- Hopefully, merchants will start allowing higher value transactions using Contactless with ApplePay, and not restrict them to £ 30
- Most importantly, ApplePay means my transactions are encrypted. While I have nothing to hide, I would feel a bit better knowing that my purchases are private, it will encourage me to use the card much more often (which enables me to keep a better view on what I spend my money on)
Of course, what I really want is for Apple Pay to launch in Australia. And the local transport authorities to accept it, so I don't need to carry all these bloody cards with me.
Great news!
So, with the Transport for London deal, can you just setup an Oyster card on it, or do you need a credit card? I ask because I don't have a UK or US credit card, but I do have an Oyster card for when I'm visiting London. (And a Clipper card for when I'm visiting the Bay Area, and a Metro card for DC, and...)
You need a credit card. TfL barriers now work with contactless credit cards as well as Oyster cards. Apple Pay replicates a contactless credit card.
My contactless card has a £20 limit per transaction. Interested to read your reference to a £30 limit. Does this mean different banks gave different limits or that the limit is set by each bank on an individual basis?
No, I think the limit was recently increased across the country.