Tag: canada mobile payments

Canadian banks rush ahead with mobile payments, leaving consumers behind

Despite the fact that people residing in Canada are slow to accept the tech, banks are still diving in.

In Canada, the major banks are working hard to implement the technology that is required to allow consumers to be able to adopt mobile payments, but at the same time, less than a quarter of the adults in the country can actually use it.

A recent whitepaper has stated that the largest six banks in the country are pouring their efforts into a small market.

The banks are highly enthusiastic about creating mobile payments apps and services that will allow people to use their smartphones instead of debit and credit cards when they make a purchase in a store. That said, the whitepaper pointed out that only under 25 percent of consumers in Canada actually have all of the requirements that are needed to actually use that technology.

This implies that Canadian banks are moving ahead with mobile payments much more quickly than consumers can actually keep up.

Canada Mobile PaymentsFinancial institutions in the country consider mobile wallets that will be used for smaller purchases – particularly when it comes to those developed through the use of NFC technology – to be a key component of their development over coming years. They believe that this will be integral to being able to satisfy what they think is a powerful consumer demand. They also feel that it is vital to take on a technologically-forward position, said the whitepaper, which was created in conjunction with the big six banks in Canada.

Some of the large banks view the creation of their own mobile wallet app as a vital component in defending themselves against the intrusion of technology giants such as Google and Apple, which are already moving into this space as financial players. They are hoping to be able to establish themselves as the natural choice for consumers, early on, before the technology giants have the opportunity to sink their claws into this marketplace and draw consumers away from the banks.

So far, services such Google Wallet and Apple Pay have been launching in a slowly growing number of countries, with the iOS version being seen as the primary threat. Apple’s mobile payments platform has already launched in the United States and it has just stepped into the United Kingdom. Many feel that it will make its way into Canada before the end of the year.

Apple’s mobile payments service may be coming to Canada

Apple Pay could launch in Canada by the end of the year

Apple Pay may finally be ready to expand beyond the U.S. market. Recent reports suggest that Canadian banks have been in negotiations concerning Apple Pay and, if successful, these negotiations could bring the mobile payments service to Canada by the end of this year. The service has managed to gain popularity in the United States market because of its convenient nature and security features. The demand for mobile payments services like Apple Pay has been on the rise in Canada for some time.

Those with newer iOS devices will be able to use Apple Pay

If Apple Pay launches in Canada, iOS users in the country will be able to use the service to pay for products in physical stores that support  mobile payments and online. The problem, however, is that the service is only compatible with the latest version of the iPhone: The iPhone 6 and iPhone 6 Plus. While iOS fans are often quick to purchase the latest iteration of the iPhone, many consumers do not have these devices, which will leave them outside of the reach of Apple Pay until they purchase new devices.

Banks have concerns regarding Apple Pay fees

Apple Pay - Mobile Payments CanadaThough banks are showing interest in Apple Pay, they have also expressed concerns regarding Apple’s fee proposals and how to set up the mobile payments service securely. Apple Pay uses biometric technology to secure transactions. Users have to register their fingerprint through their iOS device in order to authenticate payments. Because of this, the service is considered quite secure, but Apple imposes fees on all transactions made through the service, which may be a point of contention for some merchants and banks.

Apple will find competition in the Canadian market

If the security and monetary concerns of banks are resolved, Apple Pay is likely to launch in Canada by the end of 2015. It will not be the only mobile payments service available in the country, of course, as there are many startup services that have launched in Canada over the past few years. Other companies, such as Samsung, also have plans to launch their own payment platforms, which they plan to bring to Canada as well.