28 July 2016
Find out more

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

27 January 2016  |  9999 views  |  9 Apple Pay

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, 07:46 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.....
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Matt Scott
Matt Scott - NCR Corporation - London | 28 January, 2016, 14:12 Not convinced a Mobile Contactless only approach is workable at the moment. Contactless penetration isn't at the level where this is achievable.
Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Brett King
Brett King - Moven - New York | 28 January, 2016, 14:12

Matt (from NCR),

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

BK 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Matt Scott
Matt Scott - NCR Corporation - London | 28 January, 2016, 15:30

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!

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Brett King
Brett King - Moven - New York | 28 January, 2016, 17:25

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 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Brett King
Brett King - Moven - New York | 28 January, 2016, 17:25

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  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Stephen Peters
Stephen Peters - PSC - Sydney | 29 January, 2016, 11:39

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 29 January, 2016, 14:47

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
James Piggot
James Piggot - Misys - London | 01 February, 2016, 13:21

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Australian bank boycott of Apple Pay continues as NAB rolls out Android rival

Australian bank boycott of Apple Pay continues as NAB rolls out Android rival

25 January 2016  |  8850 views  |  3 comments | 13 tweets | 15 linkedin
Barclays rolls out HCE-based contactless payment app

Barclays rolls out HCE-based contactless payment app

18 January 2016  |  9878 views  |  2 comments | 24 tweets | 22 linkedin
Barclays launches app for customers to trial new mobile features

Barclays launches app for customers to trial new mobile features

02 December 2015  |  14279 views  |  0 comments | 32 tweets | 27 linkedin
Barclays to offer mobile payments via Android

Barclays to offer mobile payments via Android

15 September 2015  |  10961 views  |  3 comments | 21 tweets | 29 linkedin
UK banks drag their feet as Apple Pay opens for business

UK banks drag their feet as Apple Pay opens for business

14 July 2015  |  14038 views  |  11 comments | 26 tweets | 24 linkedin
Barclays joins Zapp as Apple Pay looms

Barclays joins Zapp as Apple Pay looms

07 July 2015  |  17365 views  |  4 comments | 27 tweets | 25 linkedin
Barclays takes on Apple with wearable payments

Barclays takes on Apple with wearable payments

29 June 2015  |  15780 views  |  1 comments | 39 tweets | 35 linkedin
TfL on-board for Apple Pay's UK launch

TfL on-board for Apple Pay's UK launch

08 June 2015  |  9312 views  |  3 comments | 25 tweets | 41 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit capgemini.comFind out more

Top topics

Most viewed Most shared
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9570 views 14 comments | 33 tweets | 38 linkedin
satelliteContactless Bitcoin startup Plutus Tap &am...
9531 views comments | 9 tweets | 4 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8468 views comments | 19 tweets | 25 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6660 views comments | 16 tweets | 20 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5908 views comments | 13 tweets | 14 linkedin

Featured job

Find your next job