Apple CEO: Apple Pay to Launch Monday with 500-Plus Banks’ Support (Oct. 16, 2014)
Apple Inc. will officially launch its NFC-based Apple Pay service on Monday, CEO Tim Cook said today during an event to unveil new devices at the company’s Cupertino, Calif., headquarters. On Oct. 20 the service will begin working at 220,000 stores and also for online purchases via Apple’s new iPad Air 2, the first Apple tablet to feature its Touch ID security. Apple initially said 10 major banks would support Apple Pay, but today Cook said 500 more banks have agreed to support the service by early next year. JPMorgan Chase will support Apple Pay beginning Monday, Chase separately announced today.
While Apple’s long-awaited embrace of NFC has generated excitement in the payments industry, the next move belongs to consumers, observers say. If Apple Pay is a hit and drives repeat purchases from iPhone users, it may prompt merchants to accelerate their plans to enable NFC purchases at the POS. Currently—even with Apple Pay’s arrival—only 2 percent of 10 million U.S. merchant locations accept mobile NFC payments.
For more on the merchant response to Apple Pay, stay tuned for next week’s in-depth Pay News report.
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