23 August 2017
Find out more

UK banks drag their feet as Apple Pay opens for business

14 July 2015  |  14890 views  |  11 Apple Pay on tube

The UK launch of Apple Pay seems 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.

The hotly-anticipated launch of Apple Pay has drummed up support from more than 250,000 stores and companies in the UK, including supermarkets Waitrose and Lidl, restaurant chains Wagamama and Nando's, and Transport for London's rail and bus networks. M&S, Boots, Spar and the Post Office have also switched on their terminals.

Lagging behind are some of the UK's major banks, including HSBC and First Direct, Lloyds Banking Group, TSB and Barclays Bank.

HSBC says that it will be online with Apple Pay in July, while Barclays tweeted that the service would be coming 'in the future'.

Barclays' excitement about the launch is a bit of a surprise since it appeared less than enthused about the arrival of Apple Pay on UK shores in the build up, launching its own range of wearables and jumping on board with the Zapp mobile commerce system from VocaLink.

Bank of Scotland, Halifax, Lloyds, TSB and Marks and Spencer, meanwhile, will not launch until the autumn.

The absence of some of the country's biggest banks has taken a bit of the shine off the launch, with Apple Pay being quietly released with none of the pizzazz that greeted its arrival in the US nine months ago.

The inevitable teething problems are also beginning to filter through:


Comments: (11)

A Finextra member
A Finextra member | 14 July, 2015, 10:47

RBS may have Apple pay day 1.....    am sure most of their customers would prefer a stable core banking payment system.   Barclays strategy has not been bad so far,  so I am sure being a bit late for what will inevitably be a slow but steady growth in APay is not going to harm them or any of the day2 + banks... Nor are the big hold-out merchants going to lose busienss .... they will all still transact the same volume/value, with or without Apple pay....   just 15bps cheaper!      Lets see how the fraud and UI Goes from the early adopters perspective... its going to be interesting. Inevitably AP will evolve and grow here, as will other Mobile enabled payments.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 14 July, 2015, 10:47

Oops :)

Lack of pavement testing...

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 14 July, 2015, 12:39

MBNA are in

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 14 July, 2015, 13:39

Apple are probably the only brand that can expect to survive bad User Experiences at the POS and still have customers still risk further embarassment, attempting subsequent transactions... well done those who are making it happen and reporting to the community!  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Shane OHara
Shane OHara - AXLPay Mobile Payments - London | 15 July, 2015, 09:47

We are the pavement testing!!

In the majority of cases this is not an Applepay failure.. many shops just not handling contactless very well... and - I am presuming Applepay is currently mag emulation and not full chip emulation ==> I know some shops (rightly) reject this in preference of chip emulation over contactless. thoughts?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Shane OHara
Shane OHara - AXLPay Mobile Payments - London | 15 July, 2015, 09:51

I've had HCE working over Android for some time - when running in mag emulation mode I see the same sort of issues that are being reported currently by Applepay users. See www.axlpay.com for video of my spends. Where Apple has the power to sway banks - I don't have the same power. So  - any of you banks out there would would like to Pilot payments over Android with cloud served tokenisation - please do contact me. (skype: oharasha)

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 15 July, 2015, 10:08

I would be interested if someone could explain to me what APay bring to the market that is new and unique?

Or is just yet another case of Apple doing something that is already there and charging more for it?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Shane OHara
Shane OHara - AXLPay Mobile Payments - London | 15 July, 2015, 10:17

They are not bringing any thing new - tech wise. They are bringing the muscle in - the muscle to sway the card issuers (banks) into talking to their app. As I understand it - their app must (with mag emulation) provide a dynamic cvv for each transaction and this must be verified on the bank side.. .so they have to share keys (or make it more complex and operate token mechanics to achieve something similar).

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 15 July, 2015, 10:32

Thanks Shane - Does it do anything new for me as a consumer? Anything that makes my life easier/cheaper?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Shane OHara
Shane OHara - AXLPay Mobile Payments - London | 15 July, 2015, 11:11

Hi, 

That is a good question. I suspect that right now it adds minor benefits:

1. Possibly faster payment through turnstyles and the likes

2. Benefit of not keying in pin - some time saving and no risk of pin theft.

3. feel good!! I love the feel of paying by phone.. there is still a novely to it.

In time (and its close) - there will be some much nicer benefits... by paying via phone the loyalty and rewards functionality can be much more sophisticated - you spend, rewards go to phone instantly, could potentially end up as extra funds on phone. Add geolocation services and it becomes slicker again - you are walking past Costa and phone pings you that you bought your last coffee there and Costa is offering you 50P off if you buy a coffee now and so on.... ignoring the intrusion questions (which ultimately will be controllable by the user), there are some clever things around the corner and Applepay is just pushing it all forward. By integrating with Banks this early they can suffer some early headache  - the benefits of having the banks on board is huge for them.

Shane. 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Martin Cox
Martin Cox - Rambus - Rotterdam | 16 July, 2015, 10:55

What Apple brings is a much slicker user experience than any of the previous mobile payment offerings we've see in the UK which required fumbling with apps, topping up a prepaid account, mandated use of PIN, screen timeouts and a generally very negative user experience. They also bring the security of a device specific PAN thanks to tokenisation.

If the debate is about mobile payments over card payments, that's not an Apple specific question and the market will decide. What Apple has done is provide a very card like experience without the low contactless transaction limit (in some stores).

It's easy to snipe at any new product in it's first hours of operation (especially if onecan do so anonymously as "a Finextra member") but checking the twitter feed it seems that the majority view is positive. Interesting that HSBC's Apple Pay related tweets were negative in a 5-1 proportion due to them not being live on day one, so it seems that there is a demand from customers. https://www.brandwatch.com/wp-content/uploads/2015/07/2.HSBC_.png

For the general public this is (currently) about mass promotion of mobile payments. For the industry I think it's about tokenisation becoming the platform for more secure transactions in store, in app and online. For both it will ultimately be the foundation for a true multiapplication experience with payment, gift, loyalty and other functionality being brough to a single device and in many cases converging to a single tap.

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

UK iPhone users unsure on Apple Pay

UK iPhone users unsure on Apple Pay

10 July 2015  |  13908 views  |  25 comments | 25 tweets | 21 linkedin
Apple files P2P payments patent

Apple files P2P payments patent

08 July 2015  |  10874 views  |  0 comments | 35 tweets | 28 linkedin
Barclays joins Zapp as Apple Pay looms

Barclays joins Zapp as Apple Pay looms

07 July 2015  |  19144 views  |  4 comments | 27 tweets | 25 linkedin
Barclays takes on Apple with wearable payments

Barclays takes on Apple with wearable payments

29 June 2015  |  16870 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  |  11635 views  |  3 comments | 25 tweets | 41 linkedin
IZettle gets ready for Apple Pay with new contactless dongle

IZettle gets ready for Apple Pay with new contactless dongle

19 May 2015  |  8496 views  |  0 comments | 15 tweets | 15 linkedin
Apple Pay forces first split in MCX ranks as Best Buy jumps onboard

Apple Pay forces first split in MCX ranks as Best Buy jumps onboard

28 April 2015  |  6590 views  |  2 comments | 14 tweets | 9 linkedin
Apple Pay coming to Canada

Apple Pay coming to Canada

17 April 2015  |  9789 views  |  0 comments | 14 tweets | 15 linkedin
Apple Pay shows steep consumer adoption curve

Apple Pay shows steep consumer adoption curve

12 March 2015  |  17958 views  |  1 comments | 34 tweets | 18 linkedin
RBS and NatWest to use Apple's fingerprint ID for mobile log-in

RBS and NatWest to use Apple's fingerprint ID for mobile log-in

18 February 2015  |  10191 views  |  0 comments | 22 tweets | 17 linkedin
Apple takes lion's share of US contactless payments

Apple takes lion's share of US contactless payments

28 January 2015  |  13788 views  |  10 comments | 34 tweets | 28 linkedin
Apple Pay shows impressive early adoption

Apple Pay shows impressive early adoption

19 December 2014  |  15072 views  |  0 comments | 18 tweets | 15 linkedin
Apple Pay claims to cover 90% of US credit card market

Apple Pay claims to cover 90% of US credit card market

17 December 2014  |  12850 views  |  1 comments | 23 tweets | 18 linkedin
US banks pay high price for cosying up to Apple

US banks pay high price for cosying up to Apple

05 November 2014  |  16982 views  |  8 comments | 25 tweets | 26 linkedin
Wells Fargo offers $20 to customers using Apple Pay; one million bank cards already loaded

Wells Fargo offers $20 to customers using Apple Pay; one million bank cards already loaded

28 October 2014  |  10072 views  |  0 comments | 9 tweets | 13 linkedin
Apple Pay launches

Apple Pay launches

20 October 2014  |  11129 views  |  1 comments | 10 tweets | 14 linkedin
Apple Pay to launch on Monday; banks rush to sign up

Apple Pay to launch on Monday; banks rush to sign up

16 October 2014  |  14073 views  |  3 comments | 28 tweets | 34 linkedin
Chase mobilises food trucks to feed the Apple fanboi lines

Chase mobilises food trucks to feed the Apple fanboi lines

19 September 2014  |  8874 views  |  1 comments | 5 tweets | 7 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.abe-eba.eudownload the paper nowvisit www.dorsum.eu

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
15246 views comments | 39 tweets | 74 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13051 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11696 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10890 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10786 views comments | 10 tweets | 8 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job