Digital payment services have received remarkable response a few years ago, which has encouraged Apple Inc to uplift the segment. However, it was recently reported that Apple pay is having difficulty to expand overseas, though it was acknowledged in the U.S. Technical issues. It seemed that the cause of its struggling is the slow adoption rate among users, and resistance from banks.   

Apple Inc unveiled a digital payment service in the US in 2014. It has enabled users to conveniently upload their debit and credit card information on the-so-called “mobile wallet,” but not only that, users can also pay for items at retail stores that are registered with point-of-sale with near field communication (NFC) technology using their iPhone handset or Apple Watch.

As part of the convenient purpose of Apple Pay, items for sale on apps can be paid by users if they integrated with the service. Meanwhile, services are recently offered in the US, Canada, UK, China, and Australia.

Subsequently, Apple had robustly taken US for 18 months, but it has failed to put a major impact in the global payments market.


Apple Pay Observations

The usage of Apple Pay was summed up to $10.9 billion, mostly boosted by users in the US.

Meanwhile, countries such as China, Britain, and Australia revealed their observations over the tech giant’s payment service, citing only Apple fans knows the service but not the general population.

In terms of the quality of service, satisfaction level among fans have two sides.        

As part of Apple’s technical issues, Australia remained a threat to the company. The digital service was later unveiled a month earlier in the country and there were reports from a bank stating that the service has often faced technical failures.

A spokeswoman of a bank said: “Bendigo Bank is experiencing some unforeseen technical issues in accepting Apple Pay payments at selected merchant terminals.”    


Furthermore, Apple VP Jennifer Bailey defended that it is normal to encounter technicalities as part of a major technology change. The digital service had just started and she expects a service improvement in the near future.     

Among the highlights of the issues Apple faces are the resistance from banks. The US banks were slightly satisfied with the digital service, but overseas banks show minimal interests. Apple puts efforts to maintain a high control in the US, and gets satisfied with a high percentage of 15 cents for each $100 spent.

Apparently, it doesn’t seem to proceed with overseas, as the payment ecosystem is not encouraging, thus it receives a lesser percentage as banks tend to perform negotiation of lower transaction fees. Therefore, resulting an unimpressive profitable growth.