Report claims Apple planning to launch Apple Pay in Canada in November

Apple Pay

According to a report from WSJ, Apple is planning to launch Apple Pay in Canada this fall, which will make it the first country outside of the United States where Apple’s NFC based payment service will be available.

The Cupertino company is currently negotiating with six of the biggest banks in Canada to launch Apple Pay in November in the country. This includes Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada.

While the banks are open to talk to Apple, they are not happy with the fees that Apple levies on every Apple Pay transaction. They are also worried about the security vulnerabilities that banks in the United States experienced while rolling out the service, though none of them were due to Apple’s fault.

However, Canadian banks are concerned, in part, about what they consider “onerous” terms of commercial agreements for Apple Pay, according to people familiar with the matter. It is also possible that Canadian banks could face higher costs than their U.S. counterparts, some of those people said. A base case for Canadian banks could be in the range of 15 to 25 basis points on credit card transactions to Apple, according to one of those people.

To alleviate any security issues, the “Big Six” banks have joined forces to form a consortium and hired McKinsey & Co. to develop a security protocol that can be used for Apple Pay. This can give them an additional leverage while negotiating about Apple Pay with Apple.

At the moment, it is not yet clear if all the six banks will be onboard when Apple Pay launches in Canada in November.

Apple is also working on bringing Apple Pay to the United Kingdom and other parts of the world, though no concrete time frame for its launch has surfaced. Recently, a report stated that Apple’s efforts to bring Apple Pay to China have stalled.

[Via WSJ]