UOB sees quick uptake of Apple Pay
UNITED Overseas Bank, which has the most number of credit and debit Visa cards in circulation in Singapore, expects mobile contactless transactions to account for 10 per cent of all its card billings by 2020, on the back of swift adoption of Apple Pay and as Singapore is likely to move towards using credit and debit cards for daily commuting, said the bank on Monday.
About 19,000 cards from UOB have been enabled for Apple Pay in just two weeks, the bank told The Business Times. This is understood to rank UOB as among the top in Visa tokenisation for Apple Pay.
Citibank, another large credit-card player, has not offered Apple Pay yet. There were about 9.5 million credit cards - including supplementary cards - circulating here as of April, data from the central bank showed.
UOB was first, and remains, for now, among the few banks that offers mobile contactless payment options on both iOS and Android devices. In November, the bank offered contactless payment on Android phones that have near-field communication capabilities.
In about six months, the bank raked up about 16,000 cards tokenised via the app UOB Mighty.
The Land Transport Authority will pilot this year the use of contactless debit or credit cards for commuting.
As it is, Singapore is ranked third in the world with the widest adoption of Visa payWave - Visa's contactless payment service - after Australia and New Zealand.
Transaction volume has jumped close to 70 per cent from a year ago for contactless payments through Visa-issued cards, Visa data has shown.
Contactless transactions are still small in value, including purchases at supermarkets and convenience stores, UOB data showed.
UOB will lift the $100 limit for all mobile contactless payments made on UOB contactless readers, said Dennis Khoo, head of personal financial services, Singapore, UOB.
All 10,000 UOB terminals, up from 2,000 now, will have the limit lifted for mobile contactless payments for all cards by end-2017.
UOB joined DBS Bank, OCBC Bank and Standard Chartered Bank in enabling Apple Pay transactions last month. Apple Pay is also available for American Express-issued cards.
Citibank, DBS, OCBC and StanChart will provide Samsung Pay for their cards soon.
Samsung is reportedly charging no fee on banks. Apple is said to have charged 0.15 per cent per transaction on cards issued by United States banks, and 0.07 per cent of each transaction on cards issued by Chinese lenders.
THE BUSINESS TIMES