The
introduction of Apple Pay to the iPhone 6 was set to position Apple as the most
powerful force in mobile payments and be widely available to consumers,
contending with the likes of Google Wallet which have had a bumpy start due to
the slower than expected ramp in contactless terminals.It is therefore a significant blow to
Apple and aspiring Apple Pay users that US retailers are shunning the use of
the service.
The
problem we’re seeing here is that certain retailers have made exclusive deals
with other mobile payment providers, which now means they can’t officially
promote Apple Pay. Unfortunately this has the potential to result in a massive
loss of customers, or at least a massive group of dissatisfied customers who
have not had their payment needs met. On top of this, the question remains if
retailer’s acquiring contracts allow them to selectively block Apple Pay’s open
loop solution at all.
As
Apple has already started the process in the US market, and following the news
of disgruntled customers, this gives the UK the chance to prepare. UK retailers
should anticipate that consumer uptake will be fast and will need to be ready
and think about ironing out issues with other agreements sooner rather than
later, so they can accommodate the widest possible customer base.
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