Apple Pay will have a significant impact on the UK’s fintech market, according to panellists at the Tech UK Payment Innovation Conference 2015 on 29 June.
Key figures from challenger and established banks welcomed the arrival of Apple’s latest UK venture during a ‘Digital Innovation in Payments’ discussion.
Lloyd’s payments and services director, Mark Curran, said: "[It] brings something new to the market and will have a significant impact, but don’t look at Apple in a guarded way.
"Android Pay has the same capability. It will also make a difference."
Barclays last night launched ‘bPay’, a rival to Apple’s endeavour that sees three devices – a wristband, fob and sticker – connect to more than 300,000 contactless payment portals across the UK. It works in conjunction with all Visa cards and MasterCards, not just Barclays account holders by linking to a separate prepaid account, in the hope of attracting non-Barclays customers.
A current limit of £20 per contactless transaction is set to increase to £30 in September 2015. However, scope for increasing or decreasing the value further relies on deals struck between the body who sets the figure, UK Cards Association, and relevant services.
The conference’s expert panel went on to list brand integration as a key factor in determining the success of Apple Pay.
Already more than a quarter of a million UK outlets are said to use Apple Pay when it officially launches, including Transport for London, McDonalds and Wagamamas.
Furthermore, in the US Coco-Cola aims to connect Apple Pay to more than 100,000 vending machines by the end of 2015.
However, speaking at the Payment Innovation Conference, Curran referenced ‘fraud repayment’ as potentially at risk from ever-increasing contactless payments routes, while Tim Jones, CEO of Nest said Apple Pay could prove a ‘tipping point’ for companies:
"Smart phones and the digitisation of payment cards will overtake [the market] soon."
The panel went on to question the level of security involved in Apple Pay’s storage of consumer data, while stating the ‘younger generation will be most concerned.’
A spokesperson for Payments UK, the body which recently succeeded the Payments Council, said:
"The launch of Apple Pay in the UK next month is another exciting development, offering consumers ever more choice. Ultimately as with any innovation in payments, it will be consumers who shape the future. Different payments offer different benefits, such as speed, protection and convenience and it will always be down to customers to decide what payment best suits a particular situation. "