Apple Pay is launching on July 14th in the United Kingdom, but banks should not be that worried according to Max Speur, the CEO of revenue management and business assurance group SunTec.
Speur claims these services from Google, Facebook and Apple do not have the same consumer trust that UK banks have built up, and it will take a few years before they are regularly accepted by both consumers and retailers.
Banks need to start moving to digital systems however, to appease new customers who want to use banking applications on mobile. Most major banks have mobile apps, with Halifax and Lloyds investing heavily to keep user reviews positive, implementing a wide range of features.
Other banks like RBS, HSBC and Santander have less favourable reviews. Users may move away from those banking apps to Google Wallet or Apple Pay, which offer a wide range of payment and banking services outside of the usual platform.
The growth in Apple Pay support in the United States in the past six months shows that regular customers and retailers are willing to drop normal banking applications and services for something new. In the UK, this will only grow faster, with the massive growth in card payments and contactless payment support.
Transport for London has already announced support for Apple Pay and Google Wallet, allowing tourists and regular commuters in London to pay on mobile. That comes alongside thousands of retailers announcing support as soon as Apple Pay launches.
Apple Pay and Google Wallet both lack all of the services required to completely take over the banking side of things, something Elon Musk wanted to do with PayPal before getting fired. No online banking company in the West has tried to redesign the entire banking system, but in China several companies are trying private banking services with loans, balances and credit.