TORONTO — Canadians could soon find themselves leaving their wallets behind when they step out for a coffee or a bite to eat, as all five of the country's biggest banks announced partnerships Tuesday with Apple Pay.
The mobile payment system allows customers to upload credit and debit card information to certain Apple devices such as newer model iPhones and Apple Watches.
Customers can then use their devices to pay for purchases of up to $100 at stores and restaurants that are equipped to handle the technology.
Apple's tap-and-pay system was first launched south of the border in 2014 and has been gradually expanding internationally.
It was introduced in Canada last November but without support from the big banks, so it was only previously available to Canadians with American Express cards.
Avinash Chidambaram, vice-president of product and platform development at Interac, says he expects Canadians to embrace the technology quickly and readily.
When Apple Pay launched in the United States, contactless payments were a new phenomenon for shoppers, and it took some time for them to adjust their payment habits.
Canadians, on the other hand, are already used to paying with a tap because the technology was introduced into credit and debit cards some time ago, Chidambaram says.
"(In Canada) You can find contactless flash terminals at virtually any merchant that you want to shop at," says Chidambaram.
"Whereas in the U.S. they're just starting that process of converting their magnetic stripe (cards) to chip-and-pin and contactless technology."
Royal Bank (TSX:RY) and CIBC (TSX:CM) customers as well as holders of Canadian Tire Bank and ATB Financial MasterCards were able to use Apple pay as of Tuesday.
TD Bank (TSX:TD) says it will be making the service available for Interac and Visa cards in the coming weeks.
The Bank of Montreal (TSX:BMO) and Scotiabank (TSX:BNS) have indicated they will roll out Apple Pay in the coming months.
KEY THINGS YOU NEED TO KNOW ABOUT APPLE PAY'S PARTNERSHIPS WITH CANADIAN BANKS
TORONTO — Canada's five biggest banks all announced Tuesday that they are partnering with Apple Pay to bring the mobile payment system to their customers. Here is what you need to know:
When will the service be available?
That depends on who you bank with. Royal Bank and CIBC customers can start using Apple Pay with their credit and debit cards immediately, while TD Bank, Bank of Montreal and CIBC clients will have to wait several weeks or months. Those who have MasterCards from Canadian Tire Bank and ATB Financial can also now use Apple Pay.
How does it work?
Customers load eligible credit or debit cards into a smartphone. At checkout, the customer holds the device close to the merchant's contactless reader while putting his or her finger on the touch ID fingerprint scanner to authenticate the transaction.
What devices does it work with?
Apple Pay only works with newer devices such as the iPhone 6 or later models, or the Apple Watch when paired with an iPhone 5.
Is there a limit to how big of a purchase you can make?
For now, customers can only pay for purchases worth $100 or less using Apple Pay, although industry insiders say that could change in the future.
What security features are in place?
When a credit or debit card is loaded into the app, a randomly generated number called a token is stored instead of the real card number. That way, hackers can't steal the card number out of the device.
