Apple Pay is already making its way out of the country. Its first outside conquest is said to be Canada, sources close to the matter told The Wall Street Journal on March 17.
The country would be a great get for Apple Inc., since Apple holds one-third of the market in smartphone users. In the world, Apple only holds 20 percent of the market, so they have a distinct advantage in Canada. To boot, the company is currently in talks with the six biggest Canadian banks. Should they all agree, Apple Pay would be connected to 90 percent of retail bank accounts.
Though there are already talks of a November Canadian launch, these banks aren’t being blindly led along. They have serious questions about security as well as the fees Apple will enforce. According to The Wall Street Journal, Canadian banks could be facing higher fees than American banks had to pay: Apple could be charging 15 to 25 basis points to Canadian banks per transaction when they only charge American banks 15 points.
The banks are also concerned with the growing reports of fraud occurring through Apple Pay, but it appears these banks are willing to work on a solution with Apple. The banks banded together to bring in a consultancy that will establish a safety measure plan for Apple Pay and for the banks themselves. The security measures will need to be agreed upon if the banks are to move forward in agreement with Apple Pay. For now, it involves a secondary authentication process that could slow down negotiations. The process could make using Apple Pay a clunky experience for a consumer, and could end up being more inconvenient than just pulling out and using a credit card.
With all these issues on the table, we’re finally able to see what a long road Apple Inc has ahead of it in implementing Apple Pay as a global product. Rather than simply distributing the hardware, getting Apple Pay into new countries takes long negotiations and many different approaches. After Canada, China is the next expected country for Apple to try to sell Apple Pay to.
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