Apple is reportedly planning to launch its electronic payments service Apple Pay in Canada in November this year.
The company is in talks with six major Canadian banks to introduce the payment service for both credit and debit cards on iPhones and the Apple Watch, The Wall Street Journal reported.
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The banks include Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada.
The Journal reported that it was still uncertain if all six Canadian banks would launch Apple Pay at the same time as the banks have expressed concerns over the fees they would receive and about fraud conducted through Apple Pay.
As a result, all the six banks have created a consortium and hired consultancy McKinsey to develop a security protocol for Apple Pay.
According to the report, Canadian banks may face higher fees than their US counterparts and are concerned that costs could rise once the use of mobile payments spreads.
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By GlobalDataA base case for Canadian banks is expected be in the range of 15 to 25 basis points on credit card transactions to Apple, while in the US Apple charges 15 basis points per credit card transaction and half-a-cent per debit transaction on Apple Pay.
Canadian banks want Apple Pay to ensure the identity of an individual through a secondary authentication.
Most of the Canadian merchants are already equipped with machines that accept contactless payments through near-field communication, a prerequisite for Apple Pay.
Apple is also planning to expand Apple Pay to China and Europe. Apple Pay, which was launched in October in the US, enables owners of the iPhones to pay for items in stores by waving the device in front of a wireless reader.
