DAVID PARKER
WALLET WARS
EU rules are breaking Apple’s grip on mobile payments, paving the way for more personalised payment choices Everyone who drives a BMW must wear a Boss suit. If this was true, we would all think it rather strange, even bordering on communistic control. But until recently we have accepted it, after all everyone who had an Apple iPhone had to pay with Apple Pay. And while not quite as rigid, most people with an Android phone paid with the Google Wallet – at least in the Western World. But it goes even further, I have some US friends where 87 per cent of US smartphone users with an income of $150,000 or more use an iPhone. So, this means if you say ‘let’s chat on WhatsApp’, the response is usually ‘What’s
EU in January 2024 to grant access, and the EU has accepted Apple’s proposal, which includes Host Card Emulation (HCE) and SoftPOS technologies. So, what does this mean in English? Going forward, your choice of payment wallet may no longer be dictated by the device you carry. Instead, it might be more logical – or beneficial – to choose a payment wallet based on personal interests, lifestyle, or the need to separate personal and business expenses. » Going forward, your choice of payment wallet may no longer be dictated by the device you carry After all the card and your bank, does not change, but the wallet provider will get to see where you spend and what you spend. For example, a sports retailer
might create a sports-oriented wallet offering live sports benefits to incentivise purchases from athletes. Similarly, a business-focused wallet could offer deals on hotels. After all, they can see where you are spending our money. The bottom line is over the next few years we are likely to see the start of the ‘Wallet Wars’. Will an all-conquering super app like in Asia win out, or will we see apps that align more closely to who you are and what your interests are? Either way the dominance of Apple Pay and Google Pay are about to be challenged, with Scandinavian companies like Vipps and Curve already launching their initiatives. So, what you pay with may change a lot over the next few years.
AT A GLANCE
David is the founder and CEO of Polymath Consulting set up to specialise in e-money/ emerging payments in 2005. Around therefore since the birth of modern
WhatsApp?’. To them, if you want to chat you do it on FaceTime – because,
after all they all have it, why use something else?
fintech, often called provocative on Linkedin, David is never short of a giving an opinion. These days he is an investor, advisor, NED and chair of a number of fintechs in the UK and Ireland and lead ambassador to The Payments Association. Judge on numerous payment awards and chair of the International Loyalty awards; often found at open banking or payments conferences around the world asking easy questions of panellists. Linkedin: www.linkedin.com/in/ polymathconsulting
However, change is underway, particularly in the UK and Europe. The European Union has forced Apple to open up its near-field com munication (NFC) technology. This will allow third-party developers to create their own contactless payment options for iPhones. This decision follows charges in 2022 accusing Apple of violating competition laws by restricting access to its NFC technology in favour of Apple Pay. Apple committed to the
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