Apple Pay comes to the UK – at last!

Apple Pay NatWestAs everyone now knows, Apple Pay launches in the UK in July. If you have a card from a participating issuer and an iPhone 6, 6 Plus or Apple Watch (paired with an iPhone 5, 5C, 5S, 6 or 6 Plus) you can pay in store at contactless card terminals. In app you can pay using an iPhone 6 or 6 Plus or iPad Air 2 or Mini 3. So far my experience of using my Apple Watch to pay in store has been limited to Starbucks (using the Starbucks app) so I’m very excited about using it in lots more stores!iPhone6_Watch_iOS9_Wallet_NatWest-PRINTiPhone6_Watch_iOS9_Wallet_NatWest-PRINTiPhone6_Watch_iOS9_Wallet_NatWest-PRINT

Apple has clearly done a good job getting a critical mass of card issuers on board at launch with most of the major issuers committed, either at the start or soon after. At launch American Express, First Direct, HSBC, Nationwide, NatWest, Royal Bank of Scotland, Santander, Ulster Bank cards will be supported. Bank of Scotland, Halifax, Lloyds Bank, M&S Bank, MBNA, TSB will follow.

Apple Pay AmexObvious omissions are Barclays and Capital One. Whilst Barclays has its own strategy around Pingit and also contactless wristbands, it is still a curious decision not to sign up at the start and one that will annoy many customers. Both Barclaycard and Capital One in the U.S. support Apple Pay which just goes to show how fragmented banks and payments markets are!

There are around 400,000 places that support contactless payments in the UK. It appears that most of these will limit Apple Pay transactions to the usual £20 contactless transaction limit (£30 from September), despite the superior authentication offered by Touch ID. However some retailers will not be bound by the limit, as in the U.S. I suspect that some contactless terminals will not support Apple Pay, especially early generation models. Currently neither my American Express nor Capital One cards work for contactless payments via any Caffe Nero terminal I’ve tried (Chip and PIN is fine and contactless elsewhere works). These terminals are old and seem to be incompatible with newer contactless cards.

Apple Pay HSBCApple has a handy summary of the key places where you can use Apple Pay, both contactless and in app Apple Pay stores.

Whilst Apple Pay is not truly disruptive because it uses the existing card scheme payment rails, it moves consumers along the journey of mobile device payment acceptance whilst improving transaction security. For consumers, frictionless payments moves a step closer.