Apple Pay is rolling out to all five major Canadian banks today giving Canadian iPhone users a new option to pay for their goods and services. Apple has finally put the lid on pending deals that were holding them up from bringing the service fully to Canada. Apple Pay was available before in Canada but only via nonbank issued American Express cards. Apple and Google are the major players in the pay by smartphone market and they’re looking to eliminate the use of cash and credit cards.
All of the Big Five banks, as well as Alberta-based ATB and Canadian Tire are also launching in-app payments for credit cards, which will allow users to make online payments to retailers on their iPads and iPhones using apps.
For the Canadian banks, Apple Pay is a mixed blessing. While it allows them to take part in an innovative technology, it also risks the threat of disintermediation — getting between the banks and their customers — at a time when they are trying to stay ahead of their new financial technology competitors.
Apple Pay and Google Pay are still a mixed bag for many users. Some have embraced the idea, some are dabbling with the idea and many aren’t fully convinced about pay by smartphone. What seems to be the main concern for many are privacy issues and the potential for identity theft. While the same risks exist for current payment options, it’s the newness of pay by smartphone apps that is probably causing many to think twice.
What do you think of Apple Pay coming to all five major Canadian banks? What do you think of paying for goods and services with your smartphone? Let us know your thoughts and comments below or hit us up on Twitter, Facebook and Google+.Source: The Star
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