Banks await payments revolution with Apple launches
Banking IT executives, telecommunications firms and tech startups are tipping Apple's belated embrace of near field communications technology to be a game-changer Photo: Reuters
Paul Smith
Banking IT executives, telecommunications firms and tech startups are tipping Apple's belated embrace of near field communications technology in its new iPhone 6 and smartwatch to be a game-changer in ushering in widespread adoption of mobile payments and innovative new services.
Apple is widely expected to launch its iPhone 6 and its first ever smartwatch at 3AM on Wednesday morning. Aside from the usual hype surrounding such an event, multiple stories suggesting the company has relented on a previous stand against the NFC chips, which make secure payments possible, have been welcomed by those charged with creating services for the devices.
NFC chips have been a feature in many non-Apple phones for some time, and financial services companies have complained that Apple's unwillingness to embrace the technology has held back growth in mobile services.
Commonwealth Bank resorted to providing stickers containing chips for customers to stick on the back of their iPhones. St George Bank's head of mobile Travis Tyler said Apple's anticipated move would bring mobile payment capability into the mainstream.
'If we look at our customer base, we have still got 60 to 65 per cent coming through iOS, so it will get us past the early adopter stage and the critical mass in the market,' Mr Tyler said.
'Once you start getting the big presence you will then start to see a number of other value add services that will start to come in over the top, not just from banks, but also from non-traditional players as well.'
Internal stats from St George show the extent to which mobile banking has taken off among Australian customers. It has had 2000 downloads of its smartwatch app, which is only available for the Sony Smartwatch 2. It is due to make its app available on the Samsung Gear 2 this week, but an NFC-equipped iWatch would make payments via watch an imminent possibility.
Mr Tyler said it would take a couple of months to replicate its current balance checking apps for an iOS-based device, but that it would take longer with an NFC device, as it would want to include payments.
Meanwhile, when asked about the potential for more phones like the iPhone 6 entering the market with NFC chips , SingTel-Optus customer managing director Vicki Brady said the telco could see opportunities to offer more services.
'We see NFC as an opportunity undoubtedly. For the average consumer today they're probably more likely to have their phone with them than their wallet at any point in time,' Ms Brady said.
An NFC-equipped iPhone would be a boon the raft of startup mobile players, keen to shake up established businesses with over-the-top services. Startup Tapit, which specialises in using contactless technologies to help clients like Telstra, Nike and McDonalds provide mobile services, including marketing and payments.
Its chief executive Jamie Conyngham said there were currently about 5.2 million Australians with NFC-capable smartphones, but that the number would explode with Apple on board.
'There's this Apple factor, it's like a spell it casts. Especially the media world, which controlls the advertising, they all use iPhones so without NFC they don't want to push the interactivity in the media, in print ads or point of sale. They know Samsung has a big market share, but they'll do it more if they know Apple participates,' Mr Conyngham said.
'You'll see a big acceleration of mobile wallets and people tapping to pay with their phone rather than their card. With NFC, I think credit cards are a sunset industry. It won't happen straight away but it will definitely happen over the next five to ten years. More and more digital wallets will be used, until finally cards are in the minority.'
Post a Comment for "Banks await payments revolution with Apple launches"