Apple Pay ushers in a new dawn of payments on the go

Apple Pay has launched in the UK amid increased demand for smart wallets and connected services.

Apple Pay is now live in the UK – the first country outside of the US to offer the contactless payment service.  For the launch both Visa and MasterCard have announced they will offer cardholders immediate access to the new service, granting them the freedom to use their cards where and how they want with a seamless experience.

Security and privacy is at the core of Apple Pay. When you add a credit or debit card to Apple Pay, the actual card numbers are not stored on the device, nor on Apple servers. Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device. Each transaction is authorised with a one-time unique dynamic security code.

Mark Barnett, President of MasterCard UK & Ireland, said of the launch: “Innovation in UK payments means it’s fast becoming the most advanced market in the world and the arrival of Apple Pay heralds this new era. We will see more change in the next five years than we’ve seen in the last 50, bringing even more convenience and security for consumers.”

Steve Perry, Chief Digital Officer at Visa Europe, comments on the rollout: “Apple’s entry to the market represents a critical piece of the mobile payments jigsaw. This is a pivotal moment for digital payments and one that demonstrates the momentum behind mobile and contactless services.

“Visa Europe has led the rollout of NFC payments ever since we launched the first contactless cards and terminals in 2007. Today there are more than 1.5 million Visa contactless terminals in stores across Europe – all ready to take mobile payments. Apple’s decision to enter the market reflects the scale of opportunity that exists in digital payments today. Its support will drive awareness and usage of contactless services around the world – we anticipate a “halo effect” that will benefit all players in the mobile payments ecosystem.”

Are there other players too?

Indeed. It’s not just Apple innovating in the digital payment sector… Elsewhere, Android Pay is also vying for dominance in this lucrative space.

Android Pay is Google’s direct response to Apple’s mobile payment system, and a successor to Google Wallet, which (notably) has gained little traction over the past four years. Samsung Pay is also set to debut this September in both the handset maker’s own territory and the US.

And although Apple has dominated the lion’s share of the headlines, banks, card providers and retailers are keen to ensure they don’t get left behind – with each championing a digital payment system of their own. Zapp will soon allow those with older smartphones to make bank debit payments, Barclays’ customers can use Pingit and PayM, while Visa card holders are also able to take advantage of the V.Me service.

Of course if you’re after a complete card replacement then you’d be wise to look at Wocket is doing. Wocket has been designed to protect your identity and replace your old wallet. It can save all of your cards to one place, securing their details with a combination of pin and biometric voice print technology.

But it’s not just your wallet that’s getting an upgrade… At Mobile World Congress Shanghai 2015 – Visa unveiled its first foray into connected car commerce. The proof-of-concept solution is powered by Visa Checkout (and other innovative mobile technologies) to create in-car purchase experiences that are secure, convenient and easy. If successful it is envisaged to be applied to quick service restaurants, petrol stations, car hire and parking services.