Apple Pay is coming to the UK sometime next year.
According to a payments industry source, “Bankers [in the UK] are falling all over themselves to get involved with Apple Pay.”
This runs somewhat counter to what The Telegraph initially reported.
“It is understood [one big bank] is uncomfortable with the amount of personal and financial information Apple wants to collect about its customers. Some executives fear Apple Pay and the data it delivers to Apple could serve as a beachhead for an invasion of the banking industry,” says The Telegraph.
While one big bank might be worried about Apple, our source says, “When a banker in the UK says Apple is asking for too much information, it’s absolutely preposterous.”
Apple Pay doesn’t retain your personal and financial data when you set up a new card. It relays it a token authority — a third party responsible for securely verifying the card you’re setting up.
The token authority also protects your card information from merchant hacks when you use Apple Pay.
The idea that Apple is going to supplant UK banks — or any bank — seems unlikely.
Commercial banks make money by issuing credit. Apple probably wants nothing to do with that side of payments.
“[Apple does] not want to have the ugly side of the payments business,” our source said. “Who wants to be the largest bill collector in the world?”
Bank will only increase their fee volume by giving people a safe and easy way to buy things. If anything, Apple Pay is helping them minimize fraud and increase their revenues.
That’s nothing to be afraid of.