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
Though 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.
According to InstaMed, approximately 20% of consumers have unpaid medical bills. This is largely due to confusion regarding the payment process. InstaMed believes that this problem will continue to grow as more consumers enroll in high deductible health insurance plans. Resolving confusion concerning the payment process is becoming a priority in the health care field and mobile payments may be able to introduce some simplicity to the process that will alleviate this problem, to some extent.