Published On: Tue, Jul 18th, 2017

N26 and Lydia announce Apple Pay support in France, though vital banks are still missing

Apple Pay hasn’t unequivocally been a vital success in France so far. France’s biggest banks still don’t devise to support Apple’s remuneration service. But dual companies announced now that they were going to supplement Apple Pay support before a finish of a year — Lydia and N26. Crédit Mutuel Arkea’s banks also recently announced that they were operative on that underline as well.

Lydia is a peer-to-peer remuneration app that lets we send income to your friends and family in no time. Think about it as a arrange of Venmo or Square Cash for France and other European countries. The association launched earthy cards final year. It lets we spend your Lydia change in stores that support MasterCard. And soon, you’ll be means to supplement this label to your Apple Pay wallet.

N26 is a German fintech startup that is formulating a bank from a belligerent up. In further to a French market, a association already announced Apple Pay support for Italy and Spain a few weeks ago.

Crédit Mutuel Arkea operates several banks underneath a Crédit Mutel brand, as good as Fortuneo, Arkea and an arriving bank for immature people called Max. Orange Bank and Banque BCP are also adding Apple Pay after this year.

Only dual banks now support Apple Pay in France, Caisse d’Épargne/Banque Populaire (it’s a same company) and Carrefour Banque. You can also supplement cards from several wallets, such as Orange Cash, Ticket Restaurant and Boon. But those aren’t loyal bank accounts.

Most large names are still missing, such as BNP Paribas, Société Général, Crédit Agricole, La Banque Postale, their particular digital banks, etc. Comparatively, a ton of banks partner with Apple in a U.K. Starling Bank only combined Apple Pay support today.

There are a integrate of reasons because those banks are still holding out on adding Apple Pay support. First, there have been mixed reports that banks don’t wish to compensate Apple’s fee.

France is a uncanny marketplace as a immeasurable infancy of a race use withdraw cards for everything. These withdraw cards are a bit some-more absolute than your normal withdraw label as we can use them for confidence deposits but giving income and removing it behind later. And banks also support interest-free overdrafts for tiny amounts.

Apple asks a financial partners to share a apportionment of a rotate price with them. But a rotate price tends to be reduce for withdraw label exchange compared to credit label transactions. That’s because Apple’s price has been a indicate of contention.

Second, vital French banks have been operative on an choice called Paylib. While this resolution sounds good on paper, I’ve attempted regulating it and it was a difficult mess. Some of a banks behind Paylib have already given adult and combined Apple Pay support anyway (Caisse d’Épargne/Banque Populaire and shortly Crédit Mutuel Arkea).

Maybe other large banks are going to change their mind now that Crédit Mutuel Arkea is adding Apple Pay support. But business aren’t unequivocally seeking for Apple Pay support as contactless cards already work well. If it’s a tiny transaction, we can only daub your label on a terminal. So Apple Pay seems stranded in a chicken-and-egg conditions for a time being.

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