Barclays, the last UK holdout against Apple Pay, confirms imminent launch

Barclays, the last UK holdout against Apple Pay, confirms imminent launch

Barclays, the last of the UK's big banks to join the Apple Pay bandwagon, has confirmed that it will be rolling out the service within the next three months, after initially holding out against the mobile payments juggernaut.

The big UK bank, which last month rolled out a HCE-based mobile payment service for Android phones, has been a reluctant stand out against the Apple Pay hype machine, instead launching its own range of wearables and jumping on board with the Zapp mobile commerce system from VocaLink.

While the UK launch of Apple Pay in July last year appeared to have caught some of the country's biggest banks by surprise, with only Nationwide, NatWest, Royal Bank of Scotland, Ulster Bank and Santander ready on day one, that number has since expanded to include all of the country's major institutions bar Barclays.

Confirmation of Barclays' imminent involvement has been confirmed in a tweet sent by Ashok Vaswarni, head of the bank's personal and corporate banking division, in response to a customer query.
The news will bring small cheer to Apple, which is currently getting a hammering on the stock market over declining iPhone sales, and remains unable to crack the resistance of the Canadian and Australian banks, which remain steadfast in their determination to spurn the service.

Comments: (9)

Richard Newbury
Richard Newbury - SIX Telekurs - London 28 January, 2016, 07:46Be the first to give this comment the thumbs up 0 likes Still no news on Capital One in the UK. Strange. They support it in the USA. Looking to cut costs? Stop producing and distributing plastic cards.....
Matt Scott
Matt Scott - Fiserv Inc - London 28 January, 2016, 14:12Be the first to give this comment the thumbs up 0 likes Not convinced a Mobile Contactless only approach is workable at the moment. Contactless penetration isn't at the level where this is achievable.
Brett King
Brett King - Moven - New York 28 January, 2016, 14:12Be the first to give this comment the thumbs up 0 likes

Matt (from NCR),

How else do you get to the required level of penetration?

BK 

Matt Scott
Matt Scott - Fiserv Inc - London 28 January, 2016, 15:30Be the first to give this comment the thumbs up 0 likes

Brett (from Moven) :)

More points of acceptance - and better acceptance on transportation/ticketing.  Even implementing acceptance on ATM.  Only when we have covered all (or the majority) of Use-Cases will we be able to offer Mobile Contactless only - until that point we will still need to issue plastic-partner cards with accounts.

Don't get me wrong - I want us to get there!

Brett King
Brett King - Moven - New York 28 January, 2016, 17:25Be the first to give this comment the thumbs up 0 likes

Matt,

That's not how companies invest. It takes adoption in parallel to grow. I would encourage you to read Brian Roemmelle's post on Apple Pay adoption. It actually shows that compared with card adoption in the early days, contactless and mobile payments are growing at 10x the rate of cards/ATM. 

I really don't think we have a problem with adoption

BK 

Brett King
Brett King - Moven - New York 28 January, 2016, 17:25Be the first to give this comment the thumbs up 0 likes

Sry here's the link to BR's post

https://www.quora.com/Why-havent-more-merchants-adopted-Apple-Pay/answer/Brian-Roemmele?srid=j2h  

Stephen Peters
Stephen Peters - FIS - Sydney 29 January, 2016, 11:39Be the first to give this comment the thumbs up 0 likes

Apple will continue to struggle because they are stuck in a "no mans land" between consumers and issuers. The solution lies in either offering a lot more functionality to consumers (loyalty etc) and completely disintermediating the issuers, or going the other way and becoming an issuer themselves (as they reportedly considered some years ago with Discover). But becoming an issuer is a highly regulated activity which is anathema to most tech companies, and the consumer centric approach is by design a closed system, thereby limiting their market.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 29 January, 2016, 14:47Be the first to give this comment the thumbs up 0 likes

According to Bloomberg, Apple Pay usage dropped in Year 2 from Year 1. According to PYMNTS.com, Apple Pay is "stuck ... in ... mobile payments purgatory". Still this article calls it a "mobile payments juggernaut".

No prizes for guessing which version Apple is going to like!

When I last checked, Barclaycard had >50% market share of UK credit card market. That should've rightly earned it the label of "UK credit card juggernaut". But it doesn't.

Not a good time to be a bank, I guess.

James Piggot
James Piggot - Finastra - London 01 February, 2016, 13:21Be the first to give this comment the thumbs up 0 likes

I don't think Apple pay is actually competing with Barclaycard this announcement will be about the ability to add a Barclays debit card to Apple Pay. The Bloomberg article is presumably about take up in the US where takeup is slowing, but that may not be the case here in the UK?

I've just been out to buy lunch which I paid for using my phone, and last week I realised at the checkout that I'd left my wallet at home but was saved by having my phone with me.

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