This is about a frustration that Canadian users have by the way we are ignored by some companies.
And Apple pay is a clear example of this. I won't go into trying to explain what it is or how it works. There is a lot of misinformation about it. Many people really have no clue about how it works and I have read about many banks or retailers that either have no clue or pretend not to. Maybe an explanation could be the focus of another post.
In short, if you have an iPhone 6 or an iPhone 6 + (or an Apple Watch when it's available) you can pay for goods and services just by placing your phone near a terminal, selecting your credit card and placing your finger or thumb on the touch id sensor. That's it.
Now, the service was released in the United States in October, and it has been according to reports a success, despite the fact that it only works with the newest iPhone models and that the majority of US retailers either block it or don't have the means (e.g. NFC terminals) to support it, and despite a disinformation campaign in the media and consumer's reluctance to use a mobile solution for payments.
Now, while the US is a big market with more than 320 million people, it's far from ready. For once, there is a big animosity between retailers and banks over credit card fees (that have resulted in a lame attempt by retailers to introduce their own payment system, but that's another matter), some big retailers (CVS, Walmart, BestBuy, Target and others) will not accept Apple pay, at least for the time being.
Secondly, the US is one of the few developed countries where chip cards have not taken off. In most retailers in the US, you have to swipe your card the old way and sign the slip. While retailers will be obliged to install NFC terminals in the near future, they won't rush to do it. It's costly and many don't want to to give Apple and the credit card companies another way in.
When Apple announced Apple Pay, they said the service was only going to be available in the US and would be launched in other countries starting in 2015. Fair enough, they have to negotiate, they can't do everything at once, the US is their most important market and so on.
While no official announcements have been made (and I might look like a fool if Apple soon announces the availability of the service in Canada), there have been rumours - let me emphasize - rumours of Apple Pay launching in the UK and China soon, but no mention of Canada (once again, the fact that the rumours don't mention Canada doesn't mean it's not in Apple's plans and we won't know for sure until Apple makes and official announcement), but I have also read comments from some bank executives saying that the system is far away from being launched in Canada because of regulations in Canada and because of the fact that there are no debit card fees in Canada, which I think it's either a lie or else, the executive in question has absolutely no clue what he is talking about.
Anyway, let's see the facts:
- Launching in Canada would make a lot of sense, after all, Canada is right north of the US, Canadians travel to the US a lot, Americans travel to Canada a lot. The economies are very complementary (despite the size difference). Except for unavailability of some products and an annoying price difference we have to pay in Canada, there is practically no separation between the US and the Canadian economy, in Canada, you can even have a US dollars credit card to use in the US.
- Apple's penetration in Canada is very high and the iPhone 6 and 6+ have sold very well here, you see really a lot of them around, of course the iPhone 6 and 6 + have sold well nearly everywhere but the fact is, there are a lot of people with them in Canada.
- Most retailers in Canada already have NFC terminals, and this is a key point. All major banks have chip credit cards and both Visa and Master Card have contactless payment systems that are very popular. In nearly any retailer, you can either wave you card in front of the terminal or you have to insert it and type your PIN, swiping and signing s receipt is really and oddity here.
- Unlike the US, the retailers that have NFC terminals are not just the big boys, but nearly all retailers. If you go to a food court, every single one of them (not just Mac Donalds) have one. Nearly all stores regardless of size, including convenience stores and gas station are already equipped with NFC terminals.
- Apple pay already works in Canada, just not for Canadians. If you have US credit card (that is compatible with Apple pay) and an iPhone 6 or 6 +, you simply can do it, you don't even have to tell the cashier, just say you want to pay with credit card and you are done.
- There are already mobile wallets relying on NFC technology available, issued by some banks themselves, this is a proof that there isn't really a regulatory concern with it. CIBC has a mobile wallet that only works on Blackberry and maybe some Android phones, since the iPhone did not have NFC, they don't support it and CIBC hasn't bothered to release an iPhone version, maybe realizing it's pointless at this point. For once, this is limited only to one bank, and the banks don't have the same marketing muscle as Apple does.
So, why ignore Canada? I see it much harder to implement in China (although I understand the rewards will be bigger) or the UK (where the banks are too scared to try anything). I can see the problem in Japan where Docomo already offers a similar service and maybe not too happy with facing a competition, but Canada?
Here in Canada we pay for Apple products as in other part of the world, in fact, we pay a higher price than in the US, why are we being ignored?
Again, it maybe a premature rant and I would be more than happy to admit that I am a fool if Apple announces it will be available in Canada, but the signs are not good.
As I said, I don't expect this to have a lot of hits and it's probably a waste of time, but maybe, just maybe Google picks it up and somebody reads it and a little pressure is put on. Maybe.
