Apple Pay Expands Into Canada With Major Banks

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Last updated on September 9, 2019

Multiple Canadian credit card and Interac issuers have announced they will be launching Apple Pay today. RBC, CIBC, ATB Financial and Canadian Tire Financial Services have all announced they will be offering their products on Apple Pay.

TD, Scotia and BMO have indicated they will be offering Apple Pay to their customers in the coming weeks and months. All three were involved in trying to develop their own alternative mobile payment network to Apple Pay.

Up to now, Apple Pay has only been available to Canadians through American Express, who launched their program in November of 2015.

Terms of the deal between the banks and Apple have not been released.

In the U.S. it is reported that issuers pay Apple around 15 basis points of purchase volume. Apple Pay usage rates have reportedly not been as strong as anticipated in the United States, in large part due to low mobile payment acceptance rates among merchants.

Canada’s close to ubiquitous contactless acceptance rates should make Apple Pay usage rates higher than those in the United States. Canadians can use Apple Pay anywhere contactless payments are accepted. According to Rob Cameron, chief product and marketing officer at Moneris, “twenty-five per cent of transactions Moneris processes today are via contactless cards or devices.” MasterCard said that 92 percent of Canada’s top merchants are able to process payments without the physical presence of a credit card required.

The clients of RBC and CIBC can use their Visa or MasterCard credit card, or Interac debit card, with compatible Apple devices anywhere contactless payments are accepted. ATB clients can only use MasterCard for now, with Interac debit coming soon. Canadian Tire Financial Services clients will be able to use their MasterCard with Apple Pay.

Clients simply add their preferred credit or debit cards in a few simple steps and continue to enjoy the rewards, benefits, and security provided by their card. Apple Pay works with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPhone SE and Apple Watch.

Apple Pay will offer the convenience of allowing Canadians to make tap and go purchases for transactions up to $100. The technology will allow consumers to avoid carrying their physical wallets, while increasing security. According to MasterCard when you use your credit card “with Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a token is created when you load your MasterCard into your device. The token, an alternate 16-digit number linked to the device, will only ever be used when paying with that device.”

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