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UK banks and Apple Pay: Are they for it or against it?

Apple Pay has been receiving its fair share of headlines as it readies itself for the jump across the pond to UK shores in 2015, but recently some contradictory reports have emerged.

Earlier this week, there were worries that its UK arrival might be delayed after it was reported that one of the country’s top banks expressed concerns (opens in new tab) regarding the level of personal and financial information Apple wants to collect about its customers.

Now, however, a source in the payments industry has said that "Bankers [in the UK] are falling all over themselves to get involved with Apple Pay," Business Insider UK reports.

The same source also labelled the data collection concerns by UK bankers as “absolutely preposterous.”

Apple Pay doesn’t actually retain any of the personal and financial information new customers have to provide when setting up a card, but instead sends it on to a third party authority responsible for securely verifying the card.

This same third party also protects the cards from merchant hacks when using the Apple Pay service.

It’s also unlikely that Apple is trying to replace UK banks, as commercial banks make money by issuing credit, something that Apple is unlikely to be interested in.

The payments industry source explains: "[Apple does] not want to have the ugly side of the payments business. Who wants to be the largest bill collector in the world?"

Despite any concerns that some banks may be having, in reality, it’s unlikely to have much of a serious effect.

The Apple Pay bandwagon will roll on and the majority of banks will be eager to jump aboard.

Sam is Head of Content at Red Lorry Yellow Lorry, and has more than six years' experience as a reporter and content writer, having held the positions of Production Editor, Staff Writer, and Senior Business Writer at ITProPortal.