Apple Pay has reportedly delayed its launch into the UK due to concerns of one major bank over the nature of private data collected by the service.
Its expansion will have to wait until sometime during the first half of next year. Negotiations with local banks hit a snag when the institution in question was uncomfortable with the amount of personal and financial information Apple is looking to collect about its customers.
Apple has previously sought to allay concerns over its data collection. Apple Executive, Eddy Cue explained when introducing the service:
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“We are not in the business of collecting your data. So when you go to a physical business and use Apple Pay, Apple doesn’t know what you bought, where you bought it, or how much you paid for it. The transaction is between you, the merchant, and your bank.”
Apple Pay has enjoyed some success since its launch several months ago, reportedly accounting for one percent of all digital payments. At McDonald’s, Apple Pay reportedly accounted for half of all wave and pay transactions last month. Although Google Wallet accounts for 4 percent, it has been around since 2011. It has not revolutionized the way people pay to the degree expected, leaving some with the hope that Apple Pay will enjoy more success.
Even if a deal can be made with the banks, it is of no use unless merchants support it. Although 90 percent of credit cards in the US are now compatible with Apple Pay, many major retailers have been slow to add their support. Some have discontinued their support in favor of the anticipated CurrentC, a mobile payments system in development that aims to cut out credit cards altogether.
Critics have pointed out that Apple Pay merely adds an additional layer to the existing financial system, and that decentralized payment systems like Bitcoin are more likely to successfully disrupt the industry.