Apple is set to launch its wireless payments service, Apple Pay, in Canada later this year according to the Wall Street Journal. The report claims that Apple is in talks with six Canadian banks about a November launch of the service, which debuted last October in the US but has yet to become available in any other countries.
Apple Pay to debut in Canada
The six banks in talks with Apple include the Royal Bank of Canada, TD Canada Trust, Scotiabank, Bank of Montreal, CIBC and National Bank of Canada. Those six account for more than 90% of Canadian bank accounts, and are set to support Apple Pay even though they have expressed concern about higher fees and possible security issues.
“The banks are open to an agreement, but they aren’t happy with Apple’s fee proposals and are concerned about security vulnerabilities like the ones that U.S. banks experienced as they rolled out the service, the people said”.
Canada is pretty much already set to support Apple Pay in terms of infrastructure and technology, as many retailers and businesses are equipped with the necessary contactless payment terminals required for the iPhone (and Apple Watch) payments service. Canada adopted Chip-and-PIN early on, and credit cards can already be tapped on a payment terminal, so Apple Pay seems like a pretty logical extension of that.
The six banks have formed a consortium and hired a consultancy to develop a security protocol for Apple Pay. They have already considered the need for additional security for authentication, such as entering a PIN, or logging into a mobile banking app.
Apple announced months ago that it’s aiming to expand Apple Pay internationally, with the likely targets Canada, China, and the UK. In China however, there have already been some hurdles, and the talks to roll out the service in the UK in 2015 are also seemingly stalled as some banks are concerned about security issues.
SOURCE: Wall Street Journal