Two non-major banks have announced that their customers will now be able to make purchases on their Apple devices, after introducing Apple Pay.
>Teachers Mutual Bank and MyState Bank have announced that their customers will be able to use the mobile payment software to make quick and secure purchases on their Apple device — such as the most recent versions of iPhones and Apple Watch — wherever contactless payments are accepted.
Customers will also be able to use Apple Pay while shopping online in apps and on websites, and can additionally benefit from Touch ID (where applicable), which allows users to bring up their account and billing information using their fingerprint, rather than filling out forms manually.
Those using the latest versions on iPad and the new MacBook Pro will also be able to use Apple Pay online, as will those using Macs introduced in or after 2012 (running macOS Sierra), as long as they confirm the payment with a relevant iPhone, Apple Watch of new MacBook Pro.
The technology works after users set up their credit or debit card with Apple Pay. Their Apple device does not store the numbers, but instead a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on an Apple device. Each transaction is then authorised with a one-time unique dynamic security code.
Users can still receive the same reward and benefits offered by credit and debit cards with Apple Pay.
Both Teachers Mutual Bank and MyState said that they have introduced the technology to make payments more convenient for customers.
Indeed, Teachers Mutual Bank has previously found that up to 75 per cent of its online banking customers use an Apple device, so it is expected that Apple Pay will be “eagerly embraced”.
Steve James, CEO of Teachers Mutual Bank, commented: “Feedback from our members tells us that they would like to use Apple Pay, and we expect it will have high adoption.”
Likewise, MyState Bank said that it hopes its 105,000 customers will benefit from the technology, with Chris Thornton, general manager product and marketing at MyState, adding: “The introduction of Apple Pay is a significant milestone in MyState’s strategy to use the latest online and digital technology to provide customers with an exceptional experience and enhanced convenience.”
Both banks already have in place Android Pay for android users.
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.