TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Moves afoot to fix Eskom’s debt problem

      4 July 2022

      Audi South Africa to offer free connectivity upgrades

      4 July 2022

      Shock fuel price increase announced

      4 July 2022

      Wiocc’s data centre business, OADC, appoints CEO

      4 July 2022

      Google’s Equiano cable lands in Namibia

      3 July 2022
    • World

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022

      Meta girds for ‘fierce’ headwinds

      1 July 2022

      Graphics card prices plummet as crypto demand dries up

      30 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Apple, Google at mercy of SA banks

    Apple, Google at mercy of SA banks

    News By Agency Staff18 June 2015
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Apple-Pay-640

    Banks in South Africa hold the key to whether mobile payment systems such as Apple Pay could be widely adopted in the country, says an expert.

    Apple Pay and Google Wallet enable users to make payments directly and securely from smartphones. Both of these payment systems use the Europay, MasterCard and Visa (EMV), or chip-and-Pin, standard.

    This means that an Apple Pay or Google Wallet could be simply linked to a credit or debit card, and users pay by tapping their near-field communication (NFC)-enabled phone on a point of sale terminal. With the iPhone 6, users can also authorise payments with their fingerprints.

    Apple Pay was recently launched in the UK after it received a cool reception in the US. Meanwhile, Google Wallet is also slowly rolling out with a limited number of merchants. Google, though, has built the technology into its online Play Store system as well.

    South Africa has adopted the international EMV standard, meaning that Apple Pay and Google Wallet could work in the country, especially with regard to processing contactless payments. But unlocking Apple Pay and Google Wallet for South African consumers requires the approval of local banks.

    “There is however a big catch before Apple Pay and Android Pay will work in South Africa. The customer’s bank that issued their card must give permission to Apple and Google to allow their cards to be loaded to the Apple Pay or Android Pay application,” said Craig Kilfoil, MD of ExactConsult.

    “In summary, if the big five banks don’t want Apple Pay or Android Pay to work in South Africa then it simply won’t happen because the big five banks control the merchant card acceptance infrastructure and completely dominate card issuance in South Africa and as much as Apple and Google might make the mobile payment technology available, it just won’t work without the permission and co-operation of the banks,” said Kilfoil.

    Even though the payment systems from Apple and Google are advertised as unique, Kilfoil argued that they may be far in common than initially thought.

    “While neither obvious nor advertised by Apple and Google as such, I have concluded that Apple Pay and now Android Pay are 100% interoperable as they are both built on Visa and MasterCard chip card technology called EMV.”

    In some markets, the technology is already in use, but roll-out in South Africa has been delayed because of the lack of devices that support the standard.

    In the meantime, banks have marketed cards with so-called “tap and pay” technology, but it is not a huge jump to expand the functionality to appropriate smartphones.

    Ultimately, the banks hold the cards in terms of the roll-out of mobile contactless payments, said Kilfoil.

    “FNB, Absa, Standard Bank, Nedbank and all the others would need to allow for their cards to be loaded to the mobile phone apps in order for them to work.”

    A survey has found that few companies are ready for mobile e-commerce, despite the massive handset penetration in the country.

    The wiGroup Fast Company SME Mobile Readiness Survey found that 35% allowed customers to make purchases on mobile devices.

    But mobile payments are likely to increase in importance as more people turn to smartphones to transact.

    Globally, Juniper Research reports that mobile e-commerce sales amounted to US$1,5 trillion in 2013, and is projected to reach over $3,2 trillion by 2017.

    Kilfoil said the key for retailers was to balance convenience, cost and risk to encourage consumers to adopt mobile payments.

    “If convenience is a key factor and the added cost is minor with little perceived additional risk then consumers that value convenience will adopt new payment method.”

    Kilfoil will be presenting his findings into the mobile payments industry at Cashless Payments Summit on 25 and 26 June at Emperors Palace Hotel in Johannesburg.  — Fin24

    Apple Craig Kilfoil ExactConsult Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleBackspace: ‘Pay back the money’
    Next Article Concern over Icasa delay on Neotel sale

    Related Posts

    Moves afoot to fix Eskom’s debt problem

    4 July 2022

    Audi South Africa to offer free connectivity upgrades

    4 July 2022

    Shock fuel price increase announced

    4 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    The MSP value proposition has evolved – here’s why it matters

    4 July 2022

    Presenting the cloud finance in South Africa survey with AWCape and Sage

    4 July 2022

    The Equiano cable has landed

    4 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.