Tag: Apple Pay

ANZ has become the country’s first bank to support Apple’s mobile payment service.

Apple Pay, Apple’s digital wallet service, has made its way to Australia, with ANZ bank being the first in the country to support the mobile payments solution. According to Reuters, Apple Pay in Australia will be extended to ANZ customers, who will be able to register credit cards on their iPhones to pay for goods and services by swiping or waving the devices over contactless payment terminals. Via the Apple Pay service, Apple charges card providers for transactions.

ANZ is confident that Apple Pay will be well received by their customers.

The deal with Apple was confirmed by the Australian bank on Thursday morning. In a statement, ANZ CEO Shayne Elliot said that the introduction of Apple’s digital wallet service is a major milestone in their strategy to utilize digital technology to offer their customers a superior experience “and will be a watershed moment in the adoption of mobile payments in Australia.”

Apparently, the demand for Apple Pay in Australia has been huge from ANZ customers. Elliott said that the bank is confident that the security, privacy and convenience of the service will be well received by their clients.

Elliott added that “With the high adoption rates of contactless payments in Australia, our customers will be world leaders in their ability to use their mobiles to make the vast bulk of essential payments.”

Apple Pay in Australia will no doubt boost the country’s adoption of contactless payments.

Currently, over 60% of all card transactions in the nation are contactless, a far higher percentage compared to the United States.

However, digital technology, like Apple’s mobile transactions solution, is making progress in the financial industry. This has prompted traditional Australian banks like ANZ, Westpac, Commonwealth Bank of Australia, and National Australia Bank to improve their digital services.

In addition to launching Apple Pay in Australia, Apple has introduced the service to other countries where banks were reluctant to get on board, such as the United States and Britain. It has also launched its mobile payments service in China and, most recently, in Singapore.

Adoption of Apple Pay remains relatively low among consumers

Apple Pay is still fighting to gain a foothold with consumers in the mobile payments space. It has been 18 months since Apple launched its new payment service, which received strong praise during its initial launch. The service was heralded as something that the mobile payments space desperately needed: A simple, intuitive, and convenient platform. Since its launch, however, Apple Pay has only managed to find modest success, with 80% of iOS users claiming to have never used the service and only 3% claiming to use it regularly.

Security and illusory convenience make Apple Pay less attractive

One of the problems that Apple Pay may be facing is the fact that the average consumer does not see such services as any more “mobile” than cash or a credit card. In essence, mobile payments are meant to be more convenient than traditional forms of commerce, but this is not usually the case due to the similarity these services have with credit and debit cards. Another issue consumers have has to do with security. Many people have noted that they will not participate in mobile payments because of security issues, fearing that their financial information could be at risk of exploitation.

Survey shows that consumers favor in-app shopping over in-store mobile transactions

A recent survey from First Annapolis Consulting, Consumers are becoming more interested in making purchases with mobile applications. In Spring on 2015, 11% made only in-app purchases, with the majority, 58%, opting to use point-of-sale systems. In December of 2015, 34% of consumers opted to only make in-app purchases. Pushing in-store mobile transactions among consumers has proven difficult, as consumers appear to favor traditional forms of commerce. This has been a challenge for Apple Pay, which has slowed its adoption among those interested in mobile payments.

Competition keeps Apple Pay from finding mainstream success

Competition is also a reason why Apple Pay adoption is relatively low. Apple is currently fighting with several other companies to establish a foothold in the mobile payments space, especially after breaking into new markets. Apple Pay recently launched in China, where companies like Alibaba and Tencent have already found a great deal of favor among consumers, limiting the exposure that Apple Pay has managed to obtain.