Apple has been working hard to make the contents of your briefcase redundant, one at a time. And today it has launched its latest assault this time, on your wallet. Apple Pay allows you to pay for items costing up to £20 with a simple tap of your iPhone.
But how does this work, and what are the chances you'll be switching cash for contactless technology in the near future?
What is Apple Pay?
The technology has been available in the US since last October, but has yet to build much momentum. However, hopes are high that the technology will take off in the UK. According to a recent report by Visa Europe, the British are by far Europe's biggest users of contactless payment technology. In March 2014, British shoppers spent £243m using contactless payments a total of 52.6 million transactions.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
How does it work?
While this all sounds like revolutionary stuff, bear in mind that for now it's only available to those who own an iPhone 6, 6 Plus or an Apple Watch. However, it's also possible to make in-app purchases on the iPad Air 2 and iPad Mini 3.
Where can you use it?
Apple has managed to get a strong cohort of retailers on board for the launch date, with participating brands including Lidl, McDonald's, Pret a Manger, Boots, Waitrose and Nando's. A bunch of others including New Look, Eat, JD Sports and Dune will begin offering the service later this year.
Transport for London has also been named as an official launch partner, which means that users are now able to use Apple Pay to touch in and out of the Underground, Overground and on London buses.
Which banks are on board?
Barclays was the only major UK bank not to partner with Apple on the initiative largely because of its own venture into contactless payment, known as bPay. However, following criticism from some account holders, the bank has today backtracked and agreed to support the service in the near future.
What are the alternatives?
Barclaycard's equivalent service bPay is set to roll out in July. It comprises a wristband, key fob and a sticker that goes on your phone, meaning that you essentially have three different contactless ways to make a payment. And you don't need to be a Barclaycard customer to use the service, which is expected to deliver sizeable market share.
-
-
Is your property your pension?
House price growth has slowed, latest stats show – but is this a wake up call for homeowners relying on their property for retirement?
-
Inheritance tax receipts hit a record year as it hits £3.2bn
HMRC is collecting more and more in inheritance tax due to fiscal drag. We explain how you can minimise your bill.
