CUPERTINO, Calif.—Apple Pay could expand into Canada by autumn if ongoing discussions between Apple and a consortium of the country’s six biggest banks pan out.
It would be Apple Pay’s first expansion outside the U.S. if it takes place.
Published reports say the six banks—Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank, and National Bank of Commerce, which account for 90% of retail bank accounts in Canada—are objecting to some of Apple’s fee proposals, and raised concerns over some security-related issues that have been seen to date in the U.S. If an agreement is reached, it is uncertain if all six banks would launch simultaneously. Those same published reports have not said whether the country’s credit unions or caisse populaire’s are involved.
iPhone has approximately one-third of the mobile device market share in Canada, and unlike the U.S., most Canadian retailers already accept contactless payments through near-field communication.
Sources have indicated that the fees charged banks by Apple in Canada could be as high as 25 basis points per transaction, vs. 15 basis points in the U.S.