Apple Pay coming to Canada

Apple Pay coming to Canada

Apple is hoping to launch its mobile payments service in Canada this autumn, although the firm is still wrangling with banks over fees and security concerns, according to the Wall Street Journal.

Canada would be the second country to get Apple Pay, which launched in the US last October, enabling users to make online and instore payments with their iPhones.

Citing sources, the WSJ says that banks representing 90% of the country's current accounts - RBC, TD Bank, Bank of Nova Scotia, Bank of Montreal, CIBC and National Bank of Canada - are in discussions with Apple ahead of a potential November launch.

However, the banks are concerned about Apple's terms, which could see them charged 15 to 25 basis points on credit card transactions - more than the 15 basis points US financial institutions are reportedly paying.

The fear that the rise of mobile payments will mean higher fees has attracted government interest in Canada, prompting a revamp of the code of conduct governing credit and debit cards in recent days to include transactions carried out with handsets.

Meanwhile, another potential stumbling block is security. According to the WSJ, the banks are unhappy with customers authenticating themselves with only a fingerprint and want an extra step - such as the use of a PIN - in the process. They have hired consultancy McKinsey & Co to help develop a security protocol.

Comments: (0)