Apple Pay is far from a new concept, in fact, it was initially released in October 2014. However, it is relatively new in the Australian market. For those unfamiliar with the product, Apple Pay is Apple’s direct payment solution, where all your bank cards are stored on your device, thus enabling users to make payments with their phone at EFTPOS terminals.
Apple Pay is currently accepted in the UK, China, Australia, Canada, and Singapore, in addition to 2.5 million locations in the United States. Other major markets such as France, Hong Kong, Spain and Switzerland are expected to offer the service by the end of 2016.
Apple Pay has now cemented its presence in the Australian market via Big 4 Banking provider ANZ. Other major banking corporations have been sceptical of introducing it as part of their offering, citing similar services via their own apps as the chief reason for avoiding the innovative tech (see Commonwealth Bank’s ‘Tap and Pay’). However, ANZ has gained a massive first mover advantage with consumers putting a lot of pressure on the other banks to follow suit - just read any of their user comments on Facebook.
Apple Pay is back on the table as a highly relevant topic of discussion following recent announcements at the 2016 WWDC. Much to consumers delight, Apple Pay will now be an option at online checkouts. At the checkout stage of online purchasing, users will now be able to select Apple Pay as a checkout option with their phone or watch device, then prompting them to authenticate their purchase via fingerprint recognition. This is a secure and streamlined checkout process that goes directly against the traditional Paypal, Masterpass or Visa checkout.
By creating a simple solution to payments and reducing the requirement to carry additional cards, Apple is positioning themselves to take control of the the payments industry globally. Mounting pressure on finance providers to be up to date with the latest tech has resulted in substantial growth of Apple’s partner network. We can only expect similar rapid proliferation in local markets. Watch this space!
Author: Tim Micallef, Digital Amplification & Trade Director, Ikon Sydney