Apple Pay, a service that could revolutionise how iPhone owners pay for goods and services, is expected to be launched in Britain.
The tech giant is expected to announce the news today in San Francisco at the Worldwide Developer Conference, its annual conference for software developers. Industry sources say that the service will be switched on in around two months.
If successful, Apple Pay could revolutionise the payments industry. Mobile operators and banks have tried multiple times to get mobile payments up and running in Britain, but have failed due to industry disputes and lack of consumer interest.
There’s already a big market for Apple Pay in the UK, as more than 40 per cent of smartphones sold in the UK are iPhones. iPhone owners are usually big-spenders, too.
The infrastructure for Apple Pay is already available in the UK with contactless payment technology. This technology is widely used in contactless debit and credit cards that allow customers to quickly pay for goods by quickly scanning their card. A wireless microchip similar to those in contactless payment cards has been installed in the iPhone. This will allow Apple Pay users to store their details and wave the handset over a payment terminal to purchase items.
Transport for London is already allowing American tourists to use Apple Pay when travelling in the capital. Apple Pay was introduced in the US last October.
Mike Cowan, a senior executive at MasterCard, said the company was “absolutely ready” to back Apple Pay in the UK.
“That’s one of the advantages of doing this on a global platform, it takes a couple of days.”
Mobile payments still have a long way to go in convincing the US market, however. There are fewer contactless payment terminals and Apple has faced calls to introduce retailer loyalty scheme support in the Apple Pay app.
Thomas Husson, an industry analyst at Forrester, said: “What they announce next will help determine if Apple Pay moves from the nice-to-have bucket to the must-have bucket for both merchants and shoppers.”
It’s likely that Apple Pay will have more success in the UK, as contactless spending totalled £2.3 billion last year.
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