Apple Pay is all set for entering Canada this fall, however, concern has been expressed by Canadian banks over Apple, Inc. (NASDAQ:AAPL) wanting a bigger cut of every transaction that it takes in the United States. The Canadian banks that are in negation with Apple are National Bank of Canada, Canadian Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia, Toronto-Dominion Bank and Royal Bank of Canada.
Apart from the worry over high fees that has to be paid to Apple, greater security is desired by these banks than it used for Apple Pay in maximum locations in the United States. As per the reports, claims were made that Canada banks work through consultants of McKinsey & Co for requiring secondary authentication before completion of transaction in Canada, which can be done by typing in a PIN or an OTP along with a fingerprint scan.
In the United States, a customer who uses iPhone 6S or iPhone 6 would bring the device close to the payment terminal which has NFC capabilities. Then, a finger would be placed on Touch ID fingerprint scanner on this phone for making the payment.
On the Apple Watch, the customer has to press the side button that lies beneath the digital crown twice before he holds the watch near the terminal. The biggest advantage of this is that around 80 percent of payment terminals have NFCs enabled.
As per the WSJ report, Canadians have the fear that they have to pay around fifteen to twenty basis points on transactions by credit card to Apple in comparison with fifteen basis points charged in the US.