Apple is planning an international expansion for its mobile-based payment services. The Cupertino-based company is reportedly eyeing Canada as its first market outside of the United States, with services said to start this fall.
According to reports, Apple is currently negotiating with the six biggest banks in Canada for partnership agreements for Apple Pay services. The banks include the Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce; National Bank of Canada, Royal Bank of Canada, and the Toronto-Dominion Bank. All in all, these six banks are responsible for most of Canada's bank account holders, with almost 90 percent of Canadians transacting. The partnership would bring the Apple Pay service to the country in November, and would permit Canada's credit and debit card systems to be used with the iPhone and Apple Watch.
According to the Wall Street Journal, the major banks in Canada are open to the suggestion of expanding Apple Pay services in the region. However, the banks find the agreement considerations by Apple, especially in matters of finances, to be inadequate. Also, the banks are afraid of security exposures, like the fraud issues and other security concerns when Apple Pay was launched in the United States, if the agreements are to be rushed.
Apple released its wireless mobile payments services in October last year, allowing owners of Apple devices in the U.S. to purchase items in stores via cashless transactions, and to make their iPhones and this year's Apple Watch function as digital wallets.
When the Apple Pay was launched, the company hoped that the quick momentum of the service would allow it to expand internationally. Canada seems to be the perfect candidate for the international launch. Research firm Catalyst reports, through WSJ, that Apple's iPhones account for one-third of Canada's smartphone market.
