Can Apple Pay make it in the Canadian market?
Apple Pay may be on the verge of breaking into the Canadian market, but the real question is whether or not the mobile payment service can actually make it. Currently in negotiations with six of the biggest banks in Canada, the company is hoping for a November launch. However, there seems to be a few plot holes—Apple’s fee proposals, as well as the security vulnerabilities like that ones that various United States banks once experienced.
For those who are not too familiar with Apple Pay, the service allows mobile payments for both credit and debit cards using iPhones and the new Apple Watch. Banks that are currently in discussion with Apple include Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada. However, it’s unknown whether all six banks will officially launch Apple Pay or if they’ll even launch it at the same time.
It’s believed that Canada could be a good market for Apple Pay due to the fact that there is a high level of iPhone market shares. Interestingly enough, iPhones count for about one-third of the Canadian smartphone market, according to research firm Catalyst. As well, many Canadian merchants are already equipped with machines that accept contactless payments through near-field communication, which happens to be a prerequisite for Apple Pay.
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In order to choose what’s best for the country, the “Big Six” banks in Canada have formed a consortium and hired McKinsey & Company as a consultant to help develop a certain security protocol for Apple Pay.
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