Apple Pay Struggles Outside the US

by Sarah Grotta 0

It is still in its early stages, but adoption of Apple Pay for payments is even slower outside the U.S. As reported by Reuters:

The service is available in six countries and among a limited range of banks, though in recent weeks Apple has added four banks to its sole Singapore partner American Express, Australia and New Zealand Banking Group in Australia, and Canada’s five big banks.
Apple Pay usage totaled $10.9 billion last year, the vast majority of which in the US. This is less than the annual volume of transactions in Kenya, a mobile payments pioneer, according to research firm Timetric.

One potential issue may be some of the technical difficulties that the launch has experienced, which does not give consumers confidence with the app:

In Australia, where Apple Pay launched a month ago, payment machines supported by one mid-sized bank reported frequent failures.

“Bendigo Bank is experiencing some unforeseen technical issues in accepting Apple Pay payments at selected merchant terminals,” a spokesperson for the bank told Reuters, adding that a lack of wider industry engagement in launching the service limited the lead time in testing the new technology.

Another potential explanation is that many of these countries are areas where contactless is widely available at the point of sale. Co consumers don’t see much of a convenience advantage tapping their phone versus tapping their card with contactless chip capabilities.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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