Apple Pay could launch in Canada this fall - report

Posted:
in iPhone edited April 2015
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.
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Comments

  • Reply 1 of 22
    About darned time!
  • Reply 2 of 22
    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
  • Reply 3 of 22
    uphilluphill Posts: 39member
    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.
  • Reply 4 of 22
    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 ????
  • Reply 5 of 22
    darkpawdarkpaw Posts: 129member

    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!

  • Reply 6 of 22
    clemynxclemynx Posts: 1,510member
    Will it be in Europe before I die?
  • Reply 7 of 22

    Let the international roll out begin!

     

    It should be everywhere by the end of 2016.

    Time will tell.

  • Reply 8 of 22
    thedbathedba Posts: 474member
    Please make it so.
  • Reply 9 of 22
    brucemcbrucemc Posts: 1,527member

    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).

  • Reply 10 of 22
    darkpawdarkpaw Posts: 129member
    Quote:

    Originally Posted by ClemyNX View Post



    Will it be in Europe before I die?



    It will arrive just after iTunes Radio.

  • Reply 11 of 22
    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.
  • Reply 12 of 22
    darkpaw wrote: »

    It will arrive just after iTunes Radio.

    The next millennium then!
  • Reply 13 of 22
    joelsaltjoelsalt Posts: 827member
    Quote:
    Originally Posted by Felixer View Post



    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...

  • Reply 14 of 22
    joelsalt wrote: »

    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.
  • Reply 15 of 22
    jbdragonjbdragon Posts: 2,075member
    felixer wrote: »
    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.
    Apple Pay has worked around the world where there's been nfc support as long as it was tied to a American bank account. This is old news and Canada is no different. It doesn't do much good for those that live in those countries with bank accounts in those countries. It does not work for them.
  • Reply 16 of 22
    dachardachar Posts: 330member



    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?

  • Reply 17 of 22
    uphilluphill Posts: 39member



    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. 

  • Reply 18 of 22
    magman1979magman1979 Posts: 1,121member

    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:

     

    Quote:

    However, though the banks are working towards an agreement, they aren't happy with the fee proposals put forward by Apple. Also, they are concerned about the security vulnerabilities with the platform as well


     

    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!

  • Reply 19 of 22
    I'll believe it when I see it. iTunes Radio has also been "coming soon" for over a year now.
  • Reply 20 of 22
    misamisa Posts: 827member
    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, <a href="http://www.wsj.com/articles/apple-pay-plans-to-launch-in-canada-this-fall-1429280816?mod=rss_Technology">according to</a> the <em>Wall Street Journal</em>. That group makes up the top six largest banks in Canada.

    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.
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