Apple CEO Tim Cook has announced plans to step down after more than 15 years leading the company.

John Ternus, head of hardware engineering at the tech giant, will assume the role of chief executive on 1 September, with Cook stepping into the role of executive chairman.

Cook will work closely with Ternus during the transition period, and will continue to “assist with certain aspects of the company” in his new role as executive chairman.

In a statement, Cook said serving as CEO has been the “greatest privilege of my life”.

"I love Apple with all of my being, and I am so grateful to have had the opportunity to work with a team of such ingenious, innovative, creative, and deeply caring people who have been unwavering in their dedication to enriching the lives of our customers and creating the best products and services in the world,” he said.

Cook’s replacement is an Apple veteran, having spent more than 25 years at the company. Ternus currently leads the hardware engineering division and has long been touted as a leading figure to replace Cook.

Cook added that Ternus “has the mind of an engineer” and is well-placed to take the reins at the company.

“He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future,” Cook commented.

“I could not be more confident in his abilities and his character, and I look forward to working closely with him on this transition and in my new role as executive chairman."

Tim Cook had a hard act to follow

Cook first joined Apple in 1998 and has served as CEO since 2011, having stepped in to replace co-founder Steve Jobs just months before his death.

Under his leadership, the company has expanded significantly, launching a range of new products including the Apple Watch, Apple Vision Pro, and AirPods series - with Ternus closely involved in the development of these ranges.

Services including iCloud, Apple TV, Apple Pay, and Apple Music were also launched under Cook’s leadership. The iPhone, a staple of the company’s offerings, has retained continued popularity across his tenure.

In 2018, the firm became the first public to be valued at $1 trillion. Since taking over, the company’s market capitalization surged from roughly $350 billion to around $4 trillion.

Cook hasn’t quite achieved the same status as a tech visionary like Jobs, however.

Dipanjan Chatterjee, VP principal analyst at Forrester, said Jobs “was never going to be an easy act to follow”, yet despite this the Apple chief transformed the company into a “durable, resilient financial powerhouse”.

“Cook’s legacy will be defined by steady, disciplined operational stewardship - proof that a company can be more than just exciting and visionary; it can also be immensely valuable to all its stakeholders,” he commented.

Chatterjee noted that while Apple’s growth trajectory has moved at a steady pace over the last 15 years, Cook hasn’t exactly overseen a step-change in innovation that would “reset Apple’s competitive position for the next two decades” – much like Jobs did with the iPhone.

This means the tech giant is still largely “structurally dependent” on the product range and requires a new growth engine.

Since the advent of generative AI in late 2022, questions have been raised about Apple’s approach to the technology, with some industry stakeholders highlighting its tentative steps in this domain.

“That’s where John Ternus comes in,” Chatterjee said. “Ternus is a hardware engineer, which signals that Apple will seek differentiation in its physical products even as it looks to reframe the device as a substrate for intelligent experiences.”

Chatterjee added that Ternus’ appointment could mark a “quiet pivot back toward product intimacy” as well as a tighter coupling between hardware, software, and future AI capabilities.

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Apple has launched a huge slate of new services, expanding the company's presence in sectors such as video, news, gaming and finance.

Announced at a live event at the company's Cupertino headquarters, the biggest news was the arrival of Apple's long-expected TV streaming service, Apple TV+. The company has partnered with a laundry-list of top talent to create a slate of new original content, including new shows from Steven Spielberg, J.J. Abrams, Kumail Nanjiani and even Oprah Winfrey.

Apple TV+ will be arriving in Autumn. The service's original programming will be ad-free and fully downloadable for offline viewing. Pricing and availability dates for the service are being withheld until Autumn.

This announcement was preceded by a number of updates surrounding the pre-existing Apple TV app, including the news that the app will be coming to smart TVs from the likes of Samsung, LG and Sony and that the service is expected to be available in 100 countries by the end of the year. The Apple TV app will also include the ability to subscribe to and access streaming services from within the app, as well as the ability to purchase specific individual cable channels.

The company also announced Apple Arcade, a subscription service for games on its App Store. The company will be offering more than 100 exclusive games via Apple Arcade, which will not be available on other platforms, or for non-subscribing users. Apple Arcade will be launching in Autumn, although full pricing has yet to be announced.

One of the most shocking reveals was the introduction of Apple Card, a new financial offering that provides users with a full bank account, powered by Goldman Sachs and MasterCard. The digital card will be accessible through the Wallet app and is accepted anywhere that supports Apple Pay, offering 2% cashback on all purchases. The company is also providing a physical card, which will be cut from titanium and feature only the owner's name, with no identifiers such as a signature or card number. Apple Card is coming to the US this Summer, but there's currently no word on when (or if) it will be coming to the rest of the world.

Apple News was expanded too, with the addition of magazines, all of which have been specifically formatted and designed for iPhone and iPad, including digital features like video covers, integrated infographics and AI-driven content recommendations.

The service - which, like the new TV package, is dubbed Apple News+ - will also include select newspapers like the Wall Street Journal and the LA Times, as well as a handful of digital publications. Apple News+ will be an additional subscription of $9.99 per month with free Family Sharing included as standard. It will be coming to the UK in Autumn, with UK pricing yet to be announced.

The announcements distinctly underscore Apple's ongoing pivot from hardware sales to services and subscriptions as its primary revenue driver. The company has been experiencing a slowdown in growth as sales of recent iPhone models continue to perform below expectations. Services like Apple Music and the App Store, meanwhile, have become a substantial chunk of the company's revenue - a chunk that it will be hoping to augment with the addition of several new streams.

Apple Pay is Apple's contactless payment solution. Here, we'll breakdown what is, how you use it, and the latest news on the serivce.

Latest news

12/04/2017: Apple Pay is being used by 86 million people, almost doubling its take-up in the last 12 months, according to Juniper Research. It makes the contactless payment technology the favourite by far, with the second most popular service, Samsung Pay, being used by 34 million people and Android Pay by 24 million.

Juniper predicts the number of people using mobile contactless payments will reach 10 million in the next few months, surpassing 150 million by the end of the year.

In total, the three mobile payment options increased their market share of the contactless market to 41% in 2016, compared to just 20% back in 2015. Juniper thinks this will increase to 56% by 2021.

However, major payment providers such as PayPal threaten Apple's position, with analysts predicting they have the infrastructure to launch a similar payment option much faster than mobile developers.

But it's not all bad news, because Juniper Research noted that mobile contactless payments will continue to gain traction across the world and has the potential to take over from the use of contactless debit cards, for example.

"We believe that as contactless usage gains traction and consumers/merchants recognise the speed and convenience it offers, then, as in European markets, there will be a further and significant increase in availability at the point-of-sale," the report's research author, Nitin Bhas, said.

Apple has already revealed retailers are fully supportive of its contactless solution, with 35% of retailers accepting it at the end of 2016, compared to just 4% in 2014.

14/07/2016: European consumers are keen to use biometrics when paying for goods, according to a new survey. The news gives a boost to payment services such as Apple Pay, which relies on biometrics for increased security.

In a survey of over 14,000 European consumers by Visa, two-thirds want to use biometrics when making payments and nearly three-quarters (73 per cent) see two-factor authentication, where a biometric is used in conjunction with a payment device, as a secure way to confirm an account holder.

The study found that online retailers have the most opportunity for gain as nearly a third (31 per cent) of people have abandoned a browser-based purchase because of the payment security process.

But Jonathan Vaux, executive director of Innovation Partnerships at Visa Europe said that one of the challenges for biometrics is scenarios in which it is the only form of authentication.

"It could result in a false positive or false negative because, unlike a PIN which is entered either correctly or incorrectly, biometrics are not a binary measurement but are based on the probability of a match," he said.

Vaux added that biometrics work best when linked to other factors, such as the device, geolocation technologies or with an additional authentication method.

27/05/2016:Apple wants to expand Apple Pay to more countries worldwide, reports TechCrunch, focusing particularly on Asia and Europe.

Jennifer Bailey, VP of Apple Pay, said: "We're working rapidly in Asia and also in Europe, our goal is to have Apple Pay in every significant market Apple is in.

"We have announced Hong Kong [and], across the [Asia Pacific] region, we're talking to many partners and banks and evaluating how quickly we can bring Apple Pay to new markets."

The service was recently expanded within Singapore, and now supports five of the country's major banks and 80 per cent of cards after launching in April. Apple Pay is also used in the US, Canada, the UK, Australia and China.

Possible locations for the service to move into this year include France, Hong Kong, Brazil and India.

"First, we look at the size of the market for Apple products," Bailey continued. "We also look at credit and debit card penetration, and [existing] contactless payment coverage.

"[But] when we bring Apple Pay to market even when contactless is low it will grow - it was 4 per cent in the US and is now 20 per cent. We also work with our network partners, where we can utilise integration with Amex and Visa, to go to market quickly."

16/05/2016: The CEO of the DVLA has hinted that driving licences may be added to Apple Pay in the future. Oliver Moreley posted a picture of a UK driving licence displayed on an iPhone within the Apple Wallet app, with the caption "So here's a little prototype of something we're working on#drivinglicence," from his Twitter account.

The picture showed what looks like a slightly tweaked version of a current photo driving licence, showing the driver's name, date of birth, issue and expiry date, alongside their picture.

Not only does it demonstrate the scope of the Wallet app - covering everything you would normally find in a physical wallet, including loyalty cards, payment cards and identification, it also shows how the government is being expected to adapt by digitising many of its services.

However, there are lots of challenges the DVLA needs to overcome before digital driving licences will become mainstream, such as verifying the identification is genuine rather than a stolen identity or a fake and preventing identity theft.

Last month, it announced the phasing out of paper driving licences, meaning drivers are only expected to present their photocard when asked for proof of ID and right to drive by the police.

05/04/2016: Barclays and Barclaycard have confirmed that customers can now use Apple Pay, almost nine months after the the service was introduced.

Barclays customers can now make payments using an iPhone, iPad, or Apple Watch at more than 400,000 locations in the UK, including London's transport network, if they have the app.

The bank had delayed adopting Apple Pay as it promoted its own contactless payment solution, and now becomes one of the last UK banks to endorse Apple Pay.

This announcement has prompted suggestions that Barclays will also support Android Pay when Google's own contactless payments tool launches this summer, but Barclays has not given any confirmation of this.

Barclays joins a fleet of UK banks supporting Apple Pay, which include Bank of Scotland, First Direct, Halifax, Lloyds Bank, M&S Bank, MBNA, Nationwide, NatWest, Royal Bank of Scotland, Santander, Tesco Bank, TSB and Ulster Bank.

29/03/2016:Apple will launch a browser version of its mobile payment service, Apple Pay, later this year, according to reports.

The new service will be available on Apple's Safari browser on iPhone or iPad models with TouchID fingerprint technology, reports Re/code, before possibly becoming available on Macs in the future.

An announcement of the expansion is expected at WWDC, Apple's developer conference that ordinarily takes place in June, but nothing has yet been confirmed. If it does go ahead, the move puts Apple in direct competition with PayPal.

26/02/2016:Apple Watch and iPhone users will be able to use the London Underground for free for the next three Mondays if they have a MasterCard account linked to Apple Pay.

Eligible users can thentouch in and out with their iOS device at any time on Monday 29 February, Monday 7 March and Monday 14 March.

Travellers can use the Tube, Overground, Bus, TfL Rail and river boat services up to a value of 28.10, which will then be refunded to the user's MasterCard account within 28 days.

05/02/2016: Barclays has announced it will adopt Apple Pay, meaning the bank's customers will be able to use the service soon. Although Barclays didn't offer up an actual release date for the service, the company's CEO said it will become available for customers to use between 26 March and 10 April.

A Barclays executive sowed the seed of speculation, responding to a customer who asked when the service will launch at the bank, confirming via email it will be offered "in the next 60 to 75 days."

Barclays is one of the last banks to support Apple's mobile payment solution, which is surprising considering it's the second biggest bank (in terms of assets) in the UK behind HSBC.

28/01/2016: Transport for London (TfL) has seen a surge in commuters paying for journeys with their mobile devices in the months since Apple Pay launched.

Its latest statistics show that more than 35,000 people a day now tap in and out of the tube using their mobile devices, and credited Apple Pay, which launched in the UK last July, for the growth.

"The launch of Apple Pay in the UK saw the number of mobile transactions increase sharply," its Commissioner's Report for February 2016 read.

"Apple Pay's launch in July saw a flurry of new mobile devices used on our system, followed by later spikes as issuing banks were added to the Apple Pay system."

In total, 3.2 million commuters used their mobile devices to pay for journeys in the second half of 2015, TfL said.

21/12/2015: Apple has secured a deal to bring its Apple Pay mobile payments service to China. The service willroll out to China UnionPay cardholders in early 2016.

"China is an extremely important market for Apple, and with China UnionPay and support from 15 of China's leading banks, users will soon have a convenient, private and secure payment experience," Apple's head of internet software and servicesEddy Cue said.

The move is important for Apple as the country is responsible for around 25 per cent of its total revenue and a lot of its growth over the last few years.

In November 2014, Apple and UnionPay struck a deal to allow the bank's cardholders to pay for digital goods on Apple's App Store.

Apple Pay will work on UnionPay's recently-launched contactless payment service Quick Pass. The Quick Pass digital wallet supports cards from 20 Chinese banks.

The Apple service will compete against rivals Alipay and WeChat in China. Financial terms of the deal were undisclosed.

22/11/2015:Apple and Mastercard are allowing people using the two to get free travel on the London Underground for the next three Mondays until Christmas.

Customers just need to touch in and touch out using their Apple iPhones or Apple Watches on London Buses, London Underground, London Trams, Docklands Light Railway, London Overground, TfL Rail, Emirates Air Line, and most National Railin the capital.

The money spent will take up to 28 days to be refunded and Mastercard will repay users up to 27.90 for each day's travel.

17/11/2015:TSB and Tesco Bank have joined the Apple Pay program meaning all but one of the major UK banks now support the payments platform. Customers having problems registering their cards should consultTSBandTesco Banksupport pages for further information. TSB is offer five per cent cashback on the first 100 spending each month.

Barclays still hasn't joined, but its current guidance is that it will be available "early in the new year.

12/10/2015:Barclays customers will finally be able to use Apple Pay, it has been confirmed ... but not until 2016.

Customer Mike Jobson went all the way to the top to find out why one of the country's largest banks isn't yet offering the service, emailing the CEO of Barclays Retail Banking in the UK, Ashok Vaswani.

"I am writing to you to complain about the complete lack of attention and care you have paid to your customers over the Apple Pay situation you seem to be ignoring," said Jobson.

"You only have to look at comments on your social media output to see that most customers want Apple Pay and are prepared to switch banks for it. Why don't you just get on the Apple Pay train before you get left behind?" he added.

It seems the terse email has paid off. While the official line until now has been that Barclays "will make an announcement on timing in due course", Vaswani told Jobson: "We have signed up for ApplePay (sic) and will launch it very early in the New Year. We truly value your custom and hope that you continue to bank with us particularly since we are launching this shortly."

How early is very early? Customers like Jobson would surely hope the first half of January, but experience tells IT Pro it can translate to Q1. Either way, Barclays customers will, as Jobson said: "have to sit it our for a few (many?) months or switch banks".

14/09/2015: Apple Pay can now be used by customers of Lloyds Bank, Halifax, and Bank of Scotland, as the trio today announced their support for the payments platform two months after its UK release date of 14 July.

Other banks including HSBC and First Direct already support Apple Pay, as well as NatWest, Nationwide, and Santander.

But notable absentees include Barclays, which has launched its own rival payments platform for customers.

The transaction limit for the contactless payment system is now 30, up from 20, after the government introduced the higher spending barrier at the start of September.

Users can pay for goods and services in around 250,000 UK shops, including Boots and Waitrose.

07/09/2015: Apple looks set to bolster the number of mobile wallets using contactless payments to 200 million by the end of 2016, up 100 per cent from 2014, according to a study by Juniper Research.

The analyst outfit said that while historically growth has been driven by P2P (Person to Person) services for those without bank accounts in developing markets, the launch of Apple Pay has "prompted a hive of activity in the contactless arena".

It argued that with public awareness of contactless heightened in the wake of Apple's launch, competing services such as Samsung Pay and the forthcoming Android Pay would no longer need to seed the market.

The research found that a number of banks were partnering with Visa or MasterCard to implement own-brand contactless wallets using a cloud-based secure element.

The analyst firm said that the MCX (Merchant Customer Exchange) Consortium had postponed the launch of its own contactless service, with several retailer partners now abandoning their closed shop' stance towards Apple Pay. It added that the consortium has not agreed terms with any leading card holders, citing the high transaction fees as a stumbling block.

"By the time MCX launches, US consumers will have a choice of perhaps half a dozen other mobile wallet solutions, not to mention the fact that an increasing number will also have contactless payment cards. In addition, the reliance on store brand payment cards could ultimately be a fatal flaw for the service," said Dr. Windsor Holden, author o Juniper's Mobile Wallets - The Future of Cash whitepaper.

The research also found that wallets run by mobile operator consortia continue to fare badly, with the UK's Weve dropping its planned wallet, and Softcard folding in the US.

28/07/2015: HSBC and First Direct have finally launched support for Apple Pay in the UK. Both banks will allow debit and credit card holders to pay for travel on London Underground, Starbucks and other retailers supporting Apple Pay.

HSBC was supposed to be a launch partner for the payment technology, but was late to the party because of an unspecified "technical error". The bank accidentally tweeted the launch date of Apple Pay before it was officially announced.

Royal Bank of Scotland, Halifax, Lloyds, M&S Bank and TSB Bank are still listed as "coming soon" on Apple Pay's UK website.

Tube passengers using Apple Pay face penalty fares if their iPhone or Apple Watch runs out of battery, warned Transport for London (TfL).

Anyone using Apple's mobile payment app to travel on the underground, trains and buses must ensure their device has enough charge to show ticket inspectors they have paid for their journey, said TfL.

The transport operator has accepted Apple Pay as a contactless payment method since its launch on 14 July, but told passengers they would be charged the maximum fare if their device dies in the middle of a journey, meaning they cannot use it to touch out' at the end.

If ticket inspectors cannot read dead iPhones or Apple Watches on their readers, passengers will be forced to pay penalty fares, TfL added.

A page on TfL's website read: "Your iPhone or Apple Watch must be switched on to use it to travel. You should also check that you have enough battery on your iPhone or Apple Watch to complete your journey."

People must also stick to either their iPhone or Apple Watch when tapping in and out with Pay, as TfL's ticket barriers will not register one journey using multiple devices.

The problem is a result of Apple Pay's security measure to stop card details being stolen - instead of releasing card details to a payee when a transaction occurs, Pay issues a unique ID for each separate transaction.

That means it would issue one for an iPhone, and a separate one for an Apple Watch, even if they were both used on the same journey.

TfL added: "If you keep a contactless payment or Oyster card in your phone case, you should remove it before using your iPhone to touch in and out. If you don't, you could pay for your travel with a card you did not intend to pay with."

Reports of Apple Pay users getting into trouble on the tube have already emerged, with people saying sweaty fingers have given Touch ID difficulty registering fingerprints, as well as blaming Pay for taking longer to register at a barrier than Oyster cards.

14/07/2015:Apple Paylaunched today in the UK, allowing people to swap their credit and debit cards for quicker payments made via iPhone or Apple Watch.

Its release means Apple customers who own the latest range of devices can buy goods and services worth up to 20 by simply holding their smartphone or smartwatch near a contactless reader.

The UK launch is the first overseas expansion of Apple Pay, which launched in the US in October last year, and can be used after downloading the latest version of iOS, version 8.4.

Adoption in Britain will outpace the "modest" uptake seen in the US, according to analyst house Forrester, which pointed to a more established contactless payment ecosystem in the UK.

Analyst Thomas Husson added: "The inclusion of Transport for London as a partner is a way to raise awareness and accelerate daily usage. Apple will [also] benefit from a larger installed base of compatible devices and from the awareness created by the media buzz from the US launch."

Apple Pay can I use it?

Only Apple customers can use Apple Pay and only those who own one of Apple's latest devices.

The iPhone 6, iPad Air 2 and iPad Mini 3 are all Apple Pay compatible because they offer both Touch ID - Apple's fingerprint sensor technology. Only the iPhone 6 (and its bigger counterpart, the 6 Plus) can be used in physical bricks and mortar shops though as iPads lack the necessary Near Field Communication (NFC) chips which allow Apple Pay to communicate with contactless payment readers. Apple's tablets can still use Apple Pay to authorise purchase in apps.

Owners of the tech giant's much-vaunted Apple Watch can also use Apple Pay.

Apple Pay how does it work?

Pay acts like many other digital wallets out there by integrating your credit or debit card into an app.

Specifically, Apple uses Passbook to store your card details, and there is no need to open the app to make a payment. Passbook will be renamed Wallet in the upcoming iOS 9.

Similar to other contactless payment methods, Apple Pay uses NFC to communicate with contactless payment readers, but it relies on extra security measures than banks' contactless credit or debit cards.

These measures are two-fold one uses Touch ID, Apple's fingerprint sensor, to ensure it is you who is making the payment.

The other, tokenisation, issues a one-time code to the retailer receiving payment to ensure the transaction is only completed once. Plus, the one-time code means any hackers that breach the retailer's systems won't gain access to your card details.

Apple Pay how do I set it up and use it?

As usual with Apple, the set-up process is sleek and simple. All you need to do is add your credit or debit card details from your iTunes account to Passbook by entering the card's security code.

Extra cards can be added within Passbook by tapping the plus' sign, then following the instructions on-screen.

Those using iPad Air 2 or iPad Mini 3 can open Settings, tap Passbook & Apple Pay', then choose to add a credit or debit card.

To set it up on your smartwatch, simply open the Apple Watch app on your iPhone and follow the same process.

For iPhone 6, iPad Air 2 or Mini 3 users, there's no need to open your Passbook app or wake your phone up when using Apple Pay. Instead, the NFC chip communicates with the contactless reader when you hold your phone near it.

Simply holding your finger on Touch ID during this process verifies the payment is not fraudulent, and the phone will vibrate and beep when the transaction is complete.

All Apple Watch users need to do is double click the side button and hold the smartwatch display up to the contactless reader the same vibration and beep signify that your payment is complete.

Apple Pay which banks and credit card companies support it?

A whole host of banks have already signed up to support Apple's new innovation, including Royal Bank of Scotland, NatWest, Santander, Citi, American Express, Ulster Bank and Nationwide.

More are expected to offer support in the autumn, including Lloyds, Halifax, M&S Bank, Bank of Scotland and TSB.

However, despite HSBC being listed as a launch partner, and leaking the official release date on Twitter a day early, it expects to introduce the service by the end of July.

Meanwhile, Barclays has decided to take its time, simply saying it would introduce it "in the future".

Both Visa and MasterCard cards are compatible with Apple Pay, and both providers claim they bring additional security to the payments process.

Visa Europe said its tokenisation technology underpins Apple Pay, by providing a one-off number to each payment, to ensure each transaction goes through only once.

MasterCard's Digital Enablement Service uses EMV cryptography on top of Apple Pay's own measures.

Apple Pay how much can I spend?

An existing 20 cap limits the sum of any single transaction, but this will rise to 30 in September.

Higher value payments can only be made when retailers have upgraded their contactless software, according to Visa Europe, which expects 80 per cent of terminals to be able to accept these by the end of 2015.

Apple Pay where can I use it?

You can use Apple Pay in just about any shop that uses contactless readers, of which there are 2.6 million terminals across Europe, according to Visa Europe.

Reports of people using it at Tesco, Starbucks, and other retailers have emerged while Apple has officially partnered with Transport for London (TfL) to enable Pay on the capital's public transport.

TfL's customer experience director, Shashi Verma, said: "With around one in ten of all contactless transactions in the UK now taking place on our transport services in London, we are delighted to welcome Apple Pay as another new and convenient contactless way for our customers to pay for their travel.

"I would encourage anyone who uses pay as you go to try contactless. There's no need to top-up, just touch in and out with your mobile device, credit or debit card."

Other launch partners include Boots, Waitrose, M&S, Post Office, McDonald's, Costa Coffee, Nandos, BP and Pret A Manger.

Online, you can use Apple Pay with easyJet, Just Eat, Hailo, Topshop, Zara, Miss Selfridge, British Airways, Addison Lee and Argos.

Apple Pay who are its rivals and how will it affect banks?

Despite what the launch data hubbub might lead you to believe, Apple Pay is only the latest in a line of mobile payment offerings.

Google is set to launch Android Pay, which also uses NFC, as part of its Android M operating system later this year, while Samsung revealed Samsung Pay at Mobile World Congress.

This will be compatible with Samsung's Galaxy S6 and, likes its rivals, uses NFC.

Existing digital wallets like PayPal are having to adapt to Apple Pay. Apple's payments system could, in the tradition of its other products, remake the mobile payments industry in its own mould.

PayPal is adapting by planning to enable businesses to accept Apple Pay via its own PayPal Here card reader, while its mobile payments arm, Braintree, will support Pay with a new SDK.

"At Braintree, we're continuously expanding our platform to enable merchants to deliver the best commerce experiences, and our extension of Apple Pay support to UK developers furthers our mission to support multiple wallets," said general manager of mobile, Aunkur Arya.

While Apple Pay experienced relatively slow take-up in the US, the UK is much more ready to accept such a product.

Last week, Visa Europe announced one billion contactless payments occurred across Europe in the last year, while it predicts people will spend 1.2 billion a week via contactless by 2020.

Despite this popularity, banks have been relatively slow to respond. Notably, Barclays and HSBC, both of which did not support Pay at launch, have their own rival services.

HSBC's Paym can send money using only a mobile number via the bank's mobile banking app while Barclays' bPay is an NFC device users can buy as a wristband, key fob or sticker.

But Apple Pay could cause problems for such innovations, according to application analysis firm App Annie.

Danielle Levitas,SVP of research and analysis said: "The launch of Apple Pay has the potential to shake up the banking and payments industries. Although Apple Pay is not the first of its kind, the company's reach and ability to evangelise is central to driving mobile payments adoption.

"Apple doesn't need to have a monopoly in payments to drive change in consumer behaviour and retailer POS systems. Delivering a best in class service that is widely promoted, Apple has the ability to turn another sector on its head."

However, other rival services are in the works, such as Zapp, which will launch in October with the backing of Sainsbury's, Asda, House of Fraser, Thomas Cook, HSBC, First Direct, Nationwide, and Santander.

Additionally, Barclays has confirmed it will also support Zapp at launch.

While a wide range of offerings will ensure Apple doesn't have a monopoly on the mobile payments market, companies that fail to adapt to the new technology will fall behind, warned Fujitsu.

Sarah Kellett, associate director of consumer-facing industries, said: "Retailers who fail to see the opportunity with Apple Pay and mobile payment services risk placing a barrier at the point of sale.

"Ultimately the more payment options available to customers, the easier it will be for retailers to make transactions and as a result, sales."

Some of the big financial names are noticeable by their absence, probably because they currently have their own contactless payment methods that will compete with Apple Pay.

The UK launch of Apple Pay will see it available in more than 250,000 locations - many more than when it was first made available in the States.

Apple Pay has gained support from many of the retailers UK consumers know and love.

UK users will also be able to pay for journeys on London Transport using Apple Pay. Apple's current Passbook app will also be rebranded as Apple Wallet, the company confirmed during the WWDC keynote, reflecting its new status for managing stored payment and store cards in addition to loyalty cards and tickets.

Users will be able to pay for bus and tube journeys in London in the same waythey do currently with their Oyster Cards when Apple Pay comes to the UK.

But will Apple Pay prove popular in the UK - and elsewhere around the world - and will it ever truly replace other forms of payment such as cash and card (read our feature on contactless payments for more information)?

Dennis Jones, CEO of UK mobile payments company Judo Payments, seems to think so.

"Apple Pay coming to the UK is the next step to not just a cashless, but also cardless society which I believe is just years away. Apple starting with 250,000 locations in the UK shows Apple's commitment to a larger launch than in the US," he said.

"For us in the UK's capital we can say goodbye to the Oyster card with Apple Pay's seamless process coming to TfL from July. Not only that but Apple Pay is coming to social in the form of immediate payment using Pinterest pins this area seems rife for expansion in the coming months/years."

Apple is not alone in the contactless space. In addition to some of the big financial names having their own offerings, many of Apple's traditional competitors have also launched their own payment methods. Indeed, Samsung Pay and Android Payboth look set to challenge Apple for the contactless throne.

Samsung revealed its rival service at MWC in March, for which the company partnered with MasterCard. Unlike Apple Pay, however, Samsung Pay doesn't use NFC and will be compatible with magnetic-stripe technology.

Android Pay, meanwhile, will be released with the new Android M mobile OS later in 2015, but Apple has the notable advantage of being compatible with smartwatches.

Banks had previously been slow to take the service up, but the beginning of 2015 has seen many more choose to support Apple Pay, including smaller or local banks. Apple claims that 220,000 stores across the US including McDonalds and Macy's currently accept the service.

At the end of 2014, the Telegraph reported that UK banks were concerned about privacy with Apple Pay, with one stating it was "uncomfortable" with the personal and financial data the service would collect on users. This may explain why Barclays was one of the few major British banks not currently supporting Apple Pay.

This story was first published on 12/01/2015 and has been updated several times (most recently on 21/12/15) to reflect new information and developments.

Android Pay, Google's new mobile payments system announced at the Google I/O 2015 developer conference, will be making its way to smartphones later this year as part of Android Marshmallow.

Despite a leaked message (via Android Police) claiming the service, which offers a way for users to pay for goods online and in store using their mobile device, would go live in the US on 26 August, it is yet to make an appearance. Therefore, expectations have once again turned to a release alongside the new Android Marshmallow mobile OS, which is expected to start rolling out to consumers in October or November.

Latest News

25/05/2016:Emirates has become the first global airline to offer UK and US customers access to Android Pay.

The service will allow customers to easily and securely buy flight tickets from Emirates' Android Pay-enabled mobile app, getting the same rewards and benefits as they would from using a credit or debit card.

The app is available to download from the Google Play store, and also supports rival mobile payment services Apple Pay and Visa Checkout.

Emirates plans to launch Android Pay integration to other markets soon.

18/05/2016: Android Pay has officially launched in the UK, and retailers and banks have begun activating the new contactless payment service for their customers.

Android Pay's UK launch was expected to be announced later today at Google I/O. However, Google appears to have launched the service already and made an announcement on its Android blog.

The UK is the second country to the receive Android Pay, following its launch in the US last year.

Android Pay is compatible with any Android-powered devices running KitKat 4.4 with NFC and HCE capabilities.

UK users will be able to use Android Pay everywhere that contactless payments are accepted, according to Google's senior director of product management, Pali Bhat.

Some of the UK retailers that are already supporting Android Pay include Boots, Greggs and Waitrose. And the contactless service can also be used on the London transport network.

Bhat added that Google will also be launching Android Pay Day, a special offers day at the end of each month, to incentivise users to use Android Pay on payday. Starbucks UK and Deliveroo will some of the first offer discounts to UK Android Pay users.

Several major UK banks and credit card providers are supporting the Google's new contactless payment service. They include the Bank of Scotland, First Direct, Halifax, HSBC, Lloyds Bank, M&S Bank, MBNA and Nationwide Building Society, with new banks to be added in future.

Barclays was one of the last banks to join Apple Pay, and, at present, it is not expected to join Android Pay.

At present, contactless payments have been limited to 30 for most services. However, that is changing with Android Pay: one of the promotional images on Google's official Android Pay page shows a person making a 33.29 transaction. The documentation for Android Pay reads: "You can make transactions up to 30 without unlocking your phone. For transactions higher than 30, you can enter your security method (pin, pattern, fingerprint)."

Members of the financial sector are excited about the benefit contactless mobile payments could enable.

Commenting on the arrival of Android Pay in the UK, Judo Payments CEO Dennis Jones, said: "With even more retailers accepting contactless and in-app payments in the UK, we are only going to see a further rise in the adoption of smartphones to pay. It's one small step towards a cashless future and one giant leap for our move to mobile."

Credit card provider MBNA is supporting Android Pay. MBNA's head of innovation Gary Watts said its customers can add their MBNA-issued credit cards to Android Pay from today.

Watts explained: "You can be among the first to the party with an MBNA card, and getting started is very straightforward: you simply need to download the Android Pay app from the Google Play Store and sign up for Android Pay through the app. You can then add your preferred MBNA MasterCard or Visa credit card by using the camera in the app to capture card information, or by entering card details manually, and you are ready to tap and go."

As part of its UK announcement, Google also said that Android Pay will soon be coming to Singapore and Australia.

The Android Pay app can be downloaded from Google Play here.

More details on the shops and banks supporting Android Pay in the UK can be found on the official Android Pay site.

Android Pay: How do I use it?

For in-the-flesh purchases, Android Pay uses NFC technology, allowing users to simply unlock their phone and hold it next to a special reader, much like a contactless credit or debit card. At selected merchants loyalty points and offers are automatically applied at the checkout.

For in-app or online purchases, users will be presented with a "Buy with [Android] Pay" option, which they can make use of with a single tap.

Is Android Pay the same as Apple Pay?

In a word, yes. Both use NFC technology in real-world scenarios and both offer one-tap online payments. Fundamentally, the only real difference is the operating system it is running on - if you have an iOS device, you will have to use Apple Pay and if you have an Android device you will have to use Android Pay (or Samsung Pay, if you have a Galaxy S6 or S6 Edge).

Apple Pay does have one feature that Android Pay does not, however: it works on smartwatches (specifically Apple Watch), whereas Android Pay so far only appears to work on Android proper and not Android Wear.

Is Android Pay the same as Samsung Pay?

Not really, no. While it does use NFC for payments, Samsung Pay only works with the newest Samsung devices. It also uses proprietary "Magnetic Secure Transmission" technology, which means it is also compatible with card machines that only have a magnetic strip reader.

Samsung Pay also only works in-store, not online.

Is Android Pay safe?

According to Google, "security is at the centre of Android Pay" and the technology uses "industry standard security tokenisation", which it developed in conjunction with the likes of American Express, MasterCard and Visa.

"When you shop at a store, Android Pay won't send your actual credit or debit card number with your payment," said Google in a blog post. "Instead, we'll use a virtual account number to represent your account information - providing you with an extra layer of security."

"And if your phone is ever lost or stolen, simply use Android Device Manager to instantly lock your device from anywhere, secure it with a new password or even wipe it clean of your personal information," Google added.

However, it is impossible for IT Pro to independently validate these claims.

Is Android Pay available in the UK?

As of 2016, Android pay is now available in the US, UK, Ireland, Poland, Singapore, Australia, New Zealand, Hong Kong and Japan. A host of UK banks currently support Android Pay, including RBS, First Direct, Halifax, Nationwide, MBNA, Lloyds, Natwest, Santander and HSBC.

Apple Pay latest news

28/07/16

Australian banks launch appeal against Apple

Three of Australia’s largest banks have joined forces in a bid to force Apple to allow third-party digital wallets on its iPhone devices.

National Australia Bank, Commonwealth Bank and Westpac Banking Corp have appealed to the Australian Competition and Consumer Commission requesting negotiations with Apple, reports The Sydney Morning Herald.

Apple does not allow third-party payment apps on its devices and the group of banks believe the restriction amounts to anticompetitive behaviour – but the group must first seek approval from the ACCC before any talks can begin.

According to Reuters, the three banks have so far refused to strike a deal to use Apple Pay – instead wanting device users to be able to use their own third-party digital wallets.

Smaller Australian lender Bendigo and Adelaide Bank has since joined the appeal, the website says.

The ACCC are expected to give their decision in approximately a month.

Speaking on behalf of the banks, Novantas senior advisor Lance Blockley said: “This is about providing Australians with real choice and better outcomes.

"If successful, the application would have tremendous benefits for the entire Australian mobile payments landscape including for public transport fares, airlines, ticketing, store loyalty and rewards programs and many more applications yet to be developed."

The Sydney Morning Herald also adds that only one Australian bank currently offers Apple Pay; ANZ Bank was originally part of the group requesting negotiations – before performing a U-turn and striking a deal back in April.

The news comes just eight months after Apple Pay’s Australian debut with American Express.

20/07/16

MasterCard steps up digital wallet game

MasterCard has redesigned its Masterpass digital wallet, aiming to step above its competitors.

The overhaul allows users of the payment system to make contactless purchases in-store and combines multiple payment forms into one, the company announced.

Protected by advanced security methods, users will now be able to make payments “across devices and channels” online, in-app and now in-store using contactless.

The all-encompassing Masterpass has rolled out in the US – with the digital wallet system set to be available in the UK next year.

The digital wallet is, however, only available on Android devices equipped with NFC chips.

“MasterCard is the first network to deliver an omni-channel, all-digital payment service for consumers, issuers and merchants leveraging the most advanced methods of payment security available today,” MasterCard announced.

“The enhanced digital payment functionality helps issuers differentiate existing products, including mobile banking apps, by integrating digital payment functionality and new services like purchase alerts and paying with points.”

Numerous US banks and partners already support Masterpass – including Bank of America, Citi and Capital One.

Craig Vosburg, president of North America, Mastercard, said: “With billions of cardholders across the globe, we are working with our issuers and merchants to ensure that we’re delivering digital payments that support consumer expectations for a familiar and secure payment experience both now and in the future.”

“The expansion of Masterpass represents an important evolution of our business,” Vosburg added, “We’re packaging the intelligence and insights generated by digital payment solutions to power a wide range of merchant and consumer experiences.”

13/07/16

Samsung Pay satisfies more customers

Samsung Pay is currently leading the way when it comes to customer satisfaction levels in the US, reports NFC World.

The latest research from Auriemma Consulting Group (ACG) shows that a larger percentage of Samsung Pay users are happy with the service than those using Apple Pay. Research also reveals that those using Samsung’s digital payment system also report fewer point-of-sale problems.

Apple Pay did come out on top in terms of converting the largest amount of its customers to its payment service – boasting 33% percent compared with Samsung Pay’s 23 percent.

Research was carried out using ACG’s Mobile Pay Tracker, sampling 2,004 customers in the US. Of this total, 1,000 people used an Apple Pay compatible device and 327 had a Samsung Pay equivalent.

Customer satisfaction for Samsung Pay totalled 92 percent - with Apple falling slightly shorter with 84 percent.

It is also reported that Samsung Pay users spend $82 on average per week using the digital wallet system – with Apple Pay users more likely to spend around the $75 mark.

Apple Pay did also come out on top in the recommendation stakes, however, with 53% of users stating that they would recommend the service - compared with 49 percent for Samsung Pay.

Managing director of payment insights at ACG Marianne Berry reasoned: “Some of this may be due to its newness, with most Samsung users reporting three months of experience compared to a year for Apple Pay. Even so, Samsung Pay outscores Apple Pay on a number of metrics.

“Right now, the pool of eligible Samsung users is much smaller than Apple’s, but as more Samsung phones are upgraded, the application’s broader merchant acceptance has the potential to more quickly convert its smartphone owners to Pay users.”

29/06/16

Apple Pay takeup falters in UK

Apple Pay is struggling to make its mark, new research has found.

Citing the latest information from PYMNTS and InfoScout Apple Pay Adoption tracker, Business Insider UK reports that adoption of the digital wallet system has “stagnated.”

The website states that 23.8 percent of users have used the payment method to date – marking an increase of just half a percent since the last quarter.

Nine percent of users had used Apple Pay in November 2014 (a month after its introduction) – with 16.6 percent having done so by the same time in 2015. By March of this year, the figure stood at 23.3 percent.

The website attributes various reasons for the stagnating figures.

It is claimed that the initial adopters of the digital wallet were “likely tech savvy and hungry to test it” – which is not reflected in the general population.

Many people also do not feel they need to make use of Apple Pay: 47 percent of people asked stated that their main reason for not doing so is because they are content with their current method of payment.

A lack of clarity as to where Apple Pay can be used is also cited as a critical factor – with many stores not advertising the fact that they accept the payment method.

Business Insider does, however, add that the problem is applicable to all digital wallet systems – not just Apple Pay.

Citing a recent US Federal Reserve study, it is reported that 74 percent of people not using a digital wallet would still not do so even if existing issues were addressed.

15/06/16

Apple Pay adds website payments

Apple Pay has been extended to website payments for Mac users, it has been announced.

Apple announced the news at its annual Worldwide Developers Conference (WWDC) this week, stating that website developers will now be able to incorporate an Apple Pay button at online checkouts.

The online payment option currently only works in the Safari web browser, where Mac users will see a “Pay with Apple Pay” option.

Once the payment option has been selected, users can then authenticate payments via their iPhone’s TouchID or through a linked Apple Watch.

The development has been seen by some as a bid to challenge to PayPal, with Piper Jaffray’s Gene Munster telling clients: “We view this as the first concrete step into direct competition with PayPal.”

According to CNBC, the analyst also states that Apple Pay is “a superior point-of-sale mobile payment solution and, with the dawn of availability in online channels, a legitimate threat to PayPal’s staying power.”

However, Ars Technica reports that Aite Group senior analyst Thad Peterson adds caution here - noting PayPal’s longer presence and lack of platform bias.

He told the website: “There are already a lot of payment choices out there and merchants aren’t likely to offer every one, as it creates what is being called the 'NASCAR effect' where the shopping cart/pay window carries a whole bunch of different logos and choices.

“More likely is that merchants will select one or two that have the greatest potential to positively impact sales. I suspect that if the merchant’s offering targets users who are in the Apple/iPhone demographic, they may choose to add Apple Pay, but it will always be in addition to a card-on-file option and/or another buy button like PayPal.”

27/05/16

Apple ‘working rapidly’ to expand Apple Pay

Apple is “working rapidly” to introduce Apple Pay to more countries, the company has said.

The digital wallet system is currently only available in six nations – the UK, the US, Australia, Canada, China and – most recently – Singapore.

With plans already in motion to bring the service to Hong Kong, Apple Pay vice president Jennifer Bailey told TechCrunch that there are plans to expand into further markets.

She said: “We’re working rapidly in Asia and also in Europe, our goal is to have Apple Pay in every significant market Apple is in.

“We have announced Hong Kong [and], across the [Asia Pacific] region, we’re talking to many partners and banks and evaluating how quickly we can bring Apple Pay to new markets.”

Bailey did not reveal which country would follow Hong Kong in receiving Apple Pay - but did explain some of the company’s thoughts behind its selection process.

“First, we look at the size of the market for Apple products. We also look at credit and debit card penetration, and [existing] contactless payment coverage,” She said.

“[But] when we bring Apple Pay to market even when contactless is low it will grow — it was four percent in the US but is now 20 percent.

“We also work with our network partners, where we can utilise integration with Amex and Visa, to go to market quickly.”

Bailey also said that she is “really excited about the momentum” gained in Apple Pay’s current markets - adding that the payment system’s introduction to China had been “really successful.”

Earlier in the year, it was reported that the service hit three million provisions in the country within its first three days.

26/05/16

Apple Pay better positioned than Android Pay?

Apply Pay has better long-term prospects than Android Pay despite an underwhelming start, it has been claimed.

According to Barron’s, just 20 percent of handsets purchased have been used to make payments with Apple’s digital wallet system.

Gene Munster, analyst at Piper Jaffray, believes this represents a “slow start” compared to the expectations of investors – but Apple’s hardware-over-software approach may place it in a better position than its Android counterpart going forward.

In a note sent to investors, Munster explains that Apple Pay utilises two chips within the device’s hardware that aid transaction security – the “Secure Enclave” and the “secure element.”

Munster said: “We believe long term the usage of Apple Pay will grow exceptionally based on a belief that Apple Pay, using a Secure Enclave/secure element inside of iOS, has an advantage over Android Pay’s host-based card emulation (HCE) in that it’s more secure, with a similar user experience.

“The secure element method utilizes internal hardware to secure payment data, while the HCE method uses software.”

The iPhone’s Secure Enclave is a separate, encrypted co-processor within Apple’s A7 chips that enables Touch ID authentication and allows payment transactions to proceed.

The secure element is described as being a chip “similar to the smart chips on modern credit cards” that enable communication with payment networks.

In contrast, Android Pay makes use of software-based Host Card Emulation (HCE) – which, although potentially less secure - does allow for more flexibility.

Munster said: “We note that there are currently some third-party applications on Android that utilize its NFC chip to offer point of sale payment offerings. One example is the Capital One Wallet, which lets users make contactless payments using their Capital One accounts.

“PayPal stated at Mobile World Congress in February that it would add NFC capabilities later this year to Android, and we expect the functionality, both in terms of user experience and technical handling of the payment, to be similar to Capital One’s Android app.”

24/05/16

Android Pay launches in UK

Android Pay has launched in the UK, meaning Android smartphone users can now make contactless payments using their handset.

The launch comes eight months after Google’s digital wallet system was first introduced in the US.

Originally unveiled in May 2015, Android owners can now make contactless payments in the same way that iPhone owners have been able to for some time with Apple Pay.

Android handsets running KitKat 4.4 and higher include NFC capability – meaning users can download Android Pay and use their handset at any of the 460,000 contactless payment terminals in the UK just as they would using a contactless card.

Android Pay also improves the online shopping experience, eradicating the need to keep inputting card details at the checkout.

Google’s digital wallet currently supports Visa and MasterCard credit and debit cards from HSBC, Lloyds Bank, Halifax, Nationwide, Bank of Scotland, First Direct, MBNA and M&S Bank.

Barclays, RBS, Natwest and Santander do not yet support the facility, however.

Unlike its Apple rival, Android Pay allows users to make payments of up to £30 without the need to unlock the handset. Transactions totalling above this require the user’s security details – such as a fingerprint, PIN or security pattern.

Ernest Doku, telecoms expert at uSwitch.com, commented that Android Pay may have a bigger impact on how payments are made in the UK due to its low entry barrier.

He said: “Any Android users glancing sideways at their iPhone owning mates paying for coffees and train tickets on their phones can put the green-eyed monster to rest. Android Pay is here and it’s prolific.

“Wide-reaching support for NFC means it works everywhere that contactless cards are accepted, but the launch is just the start and work must be done to garner mainstream adoption.”

Apple Pay is currently the most popular digital wallet service – reportedly boasting 12m monthly users worldwide. In contrast, Android Pay and Samsung Pay have an estimated 5m each, according to Bloomberg.

16/05/16

Apple Pay paves way for electronic UK driver’s licences

UK drivers could soon be able to use Apple Wallet to store their driver’s license.

CEO of the Driver Vehicle Licensing Agency (DVLA), Oliver Morley, recently shared an image of the new feature on Twitter, reports 9 to 5 Mac.

The image clearly depicts a UK licence stored within the Wallet application – something Morley states as being a “work in progress”.

The driver’s name, photo and birth date are all clearly visible on screen – along with the licence ‘issued’ and ‘expiry’ dates.

The wallet service already allows users to electronically store credit and debit cards (Apple Pay), reward cards, tickets and even airline boarding passes.

Now, it seems, the UK Government is also attempting to utilise the facility following last year’s abolishment of the driving licence’s paper counterpart.

In another tweet, Morley explained that there is currently “no timeline yet” for the electronic driving licence and that, once implemented, it would not be a replacement for the current photo card – more of an “add-on”. He also added that “security [is] our priority”.

However, The Inquirer reason that it is “unlikely” to be implemented any time soon as the “security requirements alone will require a lot of testing” – they also speculate that last year’s introduction of Apple Pay was the “likely catalyst” for this development, encouraging others to see what could be included within the Apple Wallet app.

The Independent adds that an electronic licence could “easily be connected to a database or other feature that would verify any pass that was presented” – in a similar way to how many venues already connect to a database to determine whether a person should be allowed to enter a premises.

11/05/16

Apple Pay makes progress in Canada

Support for Apple Pay continues to spread – with two major Canadian Banks now on board.

Royal Bank of Canada and Canadian Imperial Bank of Commerce will now allow their credit and debit card holders to pay using Apple’s mobile wallet service.

According to the Financial Post, other financial institutions that have joined the payment technology include ATB Financial and Canadian Tire Financial Services – with the remaining three of Canada’s “big five” banks to follow suit in the near future.

The move comes after Apple Pay launched in Canada in November 2015 via non-bank issued American Express credit cards.

Jennifer Bailey, vice president of Apple Pay, said: “We are thrilled that seven of Canada’s leading banks, including […] every one of the Big Five, are bringing Apple Pay to their customers.”

The Toronto Star reports that the delay in introducing Apple Pay to Canada could be down to the incorporation of a domestic debit card system – with debit company Interac claiming it had been in talks with Apple for “the past year and a half”.

Apple’s Jennifer bailey explained: “In Canada, Interac is a huge percentage of the payments volume so we thought it was very important to include Interac as part of our launch.”

Avinash Chidambaram - vice president of product and platform development at Interac – also concluded: “They realised that it was important for them to support debit in order to be successful in Canada.”

The Star also reports that an agreement was reached between Apple and payment processor Moneris for use “with the 85 percent of its terminals that are enabled with near-field communication technology.”

19/04/16

Apple Pay extended to Singapore

Apple Pay has been launched in Singapore, making it the sixth nation to adopt the electronic payment system.

The country follows the UK, the US, Canada, Australia and China in utilising the payment system – becoming only the second territory in Asia to provide the service.

However, Apple Pay is only available to American Express-issued cards at the present time.

Apple has said that credit and debit cards issued by Standard Chartered, DBS Bank and UOB are set to follow in the coming months.

Apple Pay Vice President Jennifer Bailey announced: "Starting today, Apple Pay is available for eligible American Express-issued credit cards in Singapore, so customers can now pay in an easy, secure and more private way.

“We’re also thrilled that credit and debit cards from Singapore’s most popular banks, including DSB, UOB, and Standard Chartered will work with Apple Pay in the coming months – so even more people can experience the best way to pay from their iPhone, Apple Watch, or iPad.”

Cheng Heng Chew, country manager at American Express Singapore, also commented. He said: "Apple Pay benefits our merchant customers looking for efficient and secure ways for their customers to shop and pay, while reducing time spent at point of sale.

“Contactless technology helps satisfy shoppers’ desire for speed and convenience as well as simplifying the payment process for businesses."

A host of retailers in Singapore have made Apple Pay available, including: TopShop, StarBucks, Uniqlo, StarHub, Shaw Theatres and FairPrice. Other retailers with NFC terminals are expected to follow in due course.

11/04/16

Barclays introduces Apple Pay

Barclays has announced that its customers can now use Apple Pay.

The move comes nine months after Apple introduced the payment system to the UK, making it the last of the major high street banks to support the service.

Ashok Vaswani, Barclays UK chief executive, said: “We are passionate about helping customers access services and carry out their day-to-day transactions in the way that suits them.

“Adding to the existing choice, from today both Barclays debit and Barclaycard credit card customers can use Apple Pay to make payments with their Apple device across the UK.”

Other UK lenders have also revealed plans to join the Apple service, with Metro Bank informing the BBC of plans to follow suit “within a few months.” Virgin Money is also expected to adopt the payment system at a later date.

Barclays, however, did add that there are currently no plans to join Android Pay or Samsung Pay once released in the UK.

The Barclays mobile app already allows Android users to pay via their handset’s NFC chip – whereas Apple does not allow third-party applications to do the same.

28/01/16

3.2m journeys made using mobile payment following launch of Apple Pay

More than 3.2m public transport journeys have been made using mobile devices in the six months since Apple Pay was launched in the UK.

According to Transport for London’s Commissioner’s Report for February, the was a sharp increase in the use of mobile devices – including EE and Vodafone’s contactless payment services – as a payment method following Apple Pay’s launch last July.

The chart below shows the number of journeys using mobile devices.

Says the report: “Apple Pay’s launch in July saw a flurry of new mobile devices used on our system, followed by later spikes as issuing banks were added to the Apple Pay system. Overall, the growth of new devices has stabilised and is similar to that for cards.”

Five ways Apple Pay has transformed business

Apple’s mobile payment system, Apple Pay, was launched alongside the iPhone 6 in July this year and with its highly-regarded security for consumers and a wide support network from financial institutions, it presents massive opportunities for retailers.

It works by using the iPhone or Apple Watch’s NFC chip to process payments, using the device’s fingerprint reader or a user’s secure passcode for authentication, unlike regular card-based contactless payment processing.

If you’re unsure whether to sign up to Apple Pay to speed up transactions with customers, here are five reasons to start using the payment service to boost your business.

It will make you more competitive

With the majority of banks supporting Apple Pay, as well as Visa, Mastercard and American Express payment providers, it means you can accept payments from customers using the full range of methods, making your business more attractive for consumers and business customers alike.

Additionally, customers have become accustomed to using contactless payments to buy things in-store and Apple Pay is set to go the same way, with consumers expecting to be able to pay via their mobile.

Jonathan Vaux, Visa Europe’s executive director for new digital payments and strategy said he thinks Apple Pay will help normalise mobile payments thanks to its advanced, secure, easy to use technology and general convenience, which in turn, is a great thing for both businesses and consumers.

Customer security

The fact customers have to use their fingerprint or passcode before authorising a transaction rather than just swiping their device means it’s more secure than other contactless payment methods, in turn giving your customers complete peace of mind that their details are safe with you.

The only time payment information leaves the device is when customers set up their cards or payment details on their iPhone or Watch. This information is encrypted, sent to Apple's servers, where it’s then encrypted again and sent to the payment provider for approval along with other information related to the customer (so the bank can authorise the addition). The provider then assigns an account number, sends it back to Apple, which is turn sends it to the user’s device.

When a customer enters their passcode or uses the fingerprint sensor to activate a transaction, Apple only sends the Apple Pay account number and a unique security code to the customer’s bank, rather than any card information to ensure card information cannot be intercepted.

No additional cost

If you’re already set up to accept mobile and contactless payments, getting on board to accept Apple Pay won’t cost you any extra.

In fact, you probably won’t need to invest in any extra equipment either - just contact your current payment provider to find out how to upgrade your system to accept Apple Pay and they should be able to make the change pretty easily.

If you don’t already accept NFC payments, you will need to upgrade your terminals, which is subject to a small fee (around £500), but that shouldn’t deter you, because it’s likely the investment will pay off pretty quickly, even if you’re a small business.

Simplifying the customer journey

Customer journeys are often disrupted with the disconnect between finding a product online (increasingly via mobile research), then heading into a shop and having to use their debit/credit card to complete the transaction.

In fact, research by McKinsey revealed that 52 percent of consumers look for a deal or promotion using their mobile before going into a store to buy it.

Using Apple Pay will make the customer journey more seamless, allowing customers to use their mobile for the entire process, including finding the product online, reserving/checking stock by phoning the shop or reserving digitally, navigating to the retailer using a mapping application on the device and then using Apple Pay to complete the transaction.

Building an e-commerce future

There are plans for Apple to start rolling out an e-commerce function in future so customers will be able to implement the solution into their e-commerce platforms, making payment processing even simpler.

The real-time checkout means even more simplicity for customers and more opportunity for you, bringing together your in-store, online and in-app payment strategies, future-proofing your organisation and ensuring you’re always one step in front of your competitors.

Barclays introduce Apply Pay

Barclays has announced that its customers can now use Apple Pay.

The move comes nine months after Apple introduced the payment system to the UK, making it the last of the major high street banks to support the service.

Ashok Vaswani, Barclays UK chief executive, said: "We are passionate about helping customers access services and carry out their day-to-day transactions in the way that suits them.

"Adding to the existing choice, from today both Barclays debit and Barclaycard credit card customers can use Apple Pay to make payments with their Apple device across the UK."

Other UK lenders have also revealed plans to join the Apple service, with Metro Bank informing the BBC of plans to follow suit “within a few months.” Virgin Money is also expected to adopt the payment system at a later date.

Barclays, however, did add that there are currently no plans to join Android Pay or Samsung Pay once released in the UK.

The Barclays mobile app already allows Android users to pay via their handset’s NFC chip – whereas Apple does not allow third-party applications to do the same.

The "surge" in contactless payments has been boosted by mobile payment services, which are set to influence the how payments are made in future, members of the UK consumer finance sector told IT Pro.

"The use of contactless payments has surged over the past year, with monthly spending now at 1.5 billion more than three times what it was last year," a spokesman for The UK Cards Association told IT Pro. "On the high street, one in six card transactions is now contactless as consumers increasingly use cards instead of cash for lower value payments."

Digital wallets, such as Apple Pay and the newly launched Android Pay, are expected to have a significant impact on how consumers pay for goods at retail, Adrian Buckle, chief economist for Payments UK told IT Pro.

"Payments via mobile phones, whether through an app, browser, or as part of a contactless payment will undoubtedly help to shape the way we pay in coming years," said Buckle.

"These new mobile payment technologies are expected to be embraced in particular by younger people and with the exception of banking app payments the majority, such as Android Pay and Apple Pay, are methods used to initiate card payments.

"By using near field communication (NFC) technology similar to contactless cards at the point-of-sale, these types of mobile payments may further increase the volume of contactless card payments."

Spending above the current contactless payment limit is one factor that may become more common as a result of demand for retailers to support mobile payment services.

The national limit for transactions on contactless cards is 30 increased from 20 on September 1, 2015.

However, both Android Pay and Apple Pay, support contactless payments over 30. Banks contacted by IT Pro, including the Lloyds Banking Group, Nationwide, HSBC and credit card provider MBNA, all said they already have the infrastructure in place to support larger contactless payments, which require further user verification.

For contactless payments over 30 on Android Pay and Apple Pay, additional verification such as entering a pin code or fingerprint sensor approval is needed from the user.

All of banks we spoke to said it was up to the merchant's appetite to accept payments over 30. IT Pro has contacted some UK retailers for a response.

Google launched Android Pay in the UK last Wednesday. It is planning on adding further mobile web support to the service in coming months.

Thanks to money transfer apps like Apple Pay and Android Pay, paying for things with a fingerprint has become commonplace - but what about paying for things with your actual finger itself?

Payment technologies company Sthaler has been looking at alternative payment methods, and thinks it's cracked a more secure method than the traditional fingerprint.

Rather than analysing the print, the Fingopay system uses a reader which shines Near-Infra-Red light through the finger, illuminating the miniscule veins before capturing the resulting image.

Users register this unique pattern against their chosen payment method, at which point it is converted to a cryptokey and tokenised.

When they pay for something at a point-of-sale terminal, the reader compares their vein pattern with the one on file, and authenticates the sale.

Sthaler is currently trialling the system for three weeks with WorldPay and Visa Europe Collab, the European innovation and investment arm of Visa, and the system is currently running in a restaurant at WorldPay's London headquarters in Bank.

Sthaler CEO Nicholas Dryden said: "Our ultimate goal is to make payments even safer, even simpler and more reliable.

"The benefit of working with Visa Europe Collab and Worldpay is that we have access to some of the best commercial minds in payments. This will help us to better understand how we can make finger vein technology even more convenient and secure for both merchants and consumers."

Nick Telford-Reed, director of technology innovation at Worldpay, added: "Our aim is to continually develop and enhance payments security, in order to provide increased reassurance for consumers and retailers, whilst creating the most frictionless experience possible."

It has already garnered hundreds of signups and positive reactions, according to the biometrics firm, after first being manufactured by Hitachi as a medical device to detect early signs of heart disease.

After seeing Sthaler's uses for the device, however, Hitachi entered into an exclusive partnership with the company, granting it sole rights to the technology for payment and authentication purposes.

Sthaler claimed that as it doesn't leave external traces in the same way a fingerprint does, its technology is more secure than other methods.

It also envisions more uses for the technology than simply payments, planning to integrate loyalty schemes and customer identification methods with the device to let customers pay for transactions, collect loyalty points and activate deals with just one action.

Eventually Fingopay could even replace passwords, and be integrated into users' homes in the future, said CEO Dryden.

Banks could be the key to driving growth of mobile payments across the UK, a new report of consumer habits from payment infrastructure provider VocaLink has suggested.

The Next Generation Payments Report, an independent study of 5,000 UK consumers from VocaLink and conducted by Illuminas, found that those using mobile payments on their smartphones has risen to 15 per cent, up from three per cent in 2013. In contrast, 46 per cent used their device for mobile banking, up from 27 per cent in 2013.

Though much of this activity is categorised as "passive" (e.g. checking balances), there was also a move towards more active use with one in four using their phones to transfer funds to others and between accounts.

Cara O'Nions, marketing and customer insight director at VocaLink, said: "Mainstream banks have the biggest opportunity, since mobile banking and payments are seen by consumers as an extension of a relationship that already exists. Respondents were much more likely to use new payment technology if prompted by their bank, as they trusted and indeed expected them to provide these services."

Apple unveiled its own contactless payments service in July, while Android Pay and Samsung Pay have also been respectively launched. Despite the popularity of such services, however, banks have been notably slow to respond, with Barclays and HSBC failing to support Apple Pay when it launched.

According to the study, barriers to adoption include confusion among consumers about how mobile payments work and a lack of knowledge about which brands offer which services within the sector. However, half of respondents said banking brands would be a key driver for them using mobile payment technology.

Security concerns are also a factor, with fears over phone loss and insecure mobile networks joining concerns of a phone's battery running out during purchase, the technology not being widely available and network issues on consumers' list of potential deterrents.

"The mobile payments space is still in its infancy, but this market moves quickly and we expect big changes over the next few years," O'Nions continued.

"Banks are uniquely placed to develop the next generation of payment services through compelling solutions that increase brand engagement and loyalty -- but if banks want to take ownership of this space before one of their ambitious rivals does, they need to move quickly to make mobile payments the new norm."

Contactless payments at a glance

• Contactless payment limit increased from 20 to 30 from 1 September 2015.
• There are around 69 million contactless cards in circulation.
• Whopping 2.5 billion spent in the UK using contactless in first half of year, according to the UK Cards Association.
• Take a look at our Apple Pay vs Android Pay comparison for information on the UK release date and more.

Latest contactless payments news

02/09/15 -The upper threshold for contactless payments in the UK increased from 20 to 30 yesterday, although it might take a while for all merchants to update their equipment to accept that amount.

The shift upwards is in response to UK consumers' appetite for spending using contactless methods. Indeed, the latest figures from the UK Cards Association state that 2.5 billion was spent using contactless methods in the first half of this year, with monthly spending up from 287 million per month in January 2015 to 567 a per month in June 2015. In just six months, UK consumers have spent more using contactless than they did in the whole of 2014.

"Contactless payments are fast, easy and secure. With more contactless cards in wallets than ever before and a growing number of retailers accepting contactless payments, we have seen a huge rise in the number of payments being made," saidGraham Peacop, CEO at the UK Cards Association.

"The growth in contactless payments shows people want to use contactless cards and increasing the limit gives customers even more opportunities to pay in this way."

Some consumers remain concerned about fraud given how seamless a contactless payments transaction is thanks to lack of signature or PIN required. However, the UK Cards Association suggests that fraud levels are actually extremely low - less than a penny for every 100 spent.

Will Apple Pay and Android Pay kill off traditional payment methods?

Android Pay, a competitor to mobile payments systems like Apple Pay, was announced at the 2015 Google I/O developer conferenceback in May 2015, causing many to declare this the final nail in the coffin of standard cash and card payments and the undisputed rise of contactless to power.

With Apple, Google and Samsung all now offering their own mobile payments services, and contactless payment technology quickly becoming the preferred method for many consumers, is it time to call time on the old ways, and usher in the next era of mobile payments?

"We've recently hit the milestone of card and automated payments overtaking cash for the first time," said Dennis Jones, CEO of Judo Payments. "This might seem significant in itself, yet really it's an early stage of a bigger transition. The computers in our pockets our mobile phones will usher in a cardless society in the not-too-distant future."

The death of cash payments?

The prevalence of mobile payment platforms and the eagerness for companies as large as Apple and Google to offer their own solutions has caused many to question whether there will be a time in the near future when cash and traditional cards are no longer the norm.

Simon Black, CEO of PPRO Group, said: "The catalyst for this transformation has been the advancement of digital technology and many other trends, which have emerged over the last couple of years and have contributed to the decline of conventional retail banking as we know it.

"The introduction of Apple Pay and Samsung Pay has encouraged the mobile payment industry to adapt at a faster rate, and while it is true that mobile payment is still essentially in its infancy, in just a few short years from now, payment via smartphone, smartwatches or other intelligent devices is likely to be just as commonplace as paying by cash, debit or credit card today."

Unlike Android Pay (for now) Apple Pay is also available on a wearable - the Apple Watch

According to a report from the Payments Council, cash was overtaken by non-cash payments for the first time ever in 2014 48 per cent from 52 per cent in 2013 with this figure predicted to keep falling year over year.

"Be it mobile wallets, virtual cards or biometric payments, the world of payments is transforming and cash can expect to slip further down the preference list over the coming years until it will eventually become obsolete in most places," Simon Black added.

Citing this report, Spiros Theodossiou, vice president of product strategy at Skrill, said: "We are reaching a tipping point in the payments industry... The move towards a cashless society is well underway.

"The significant growth seen in contactless transactions last year is further evidence that consumers are gravitating towards faster and more convenient ways to pay. In response, financial payments companies are delivering innovative new products, from digital wallets to contactless and mobile payment methods, increasing the options for consumers to move away from more traditional methods."

Figures from the UK Cards Association also reveals that card spending in the UK rose by 8.2 per cent in 2014, reaching a record figure of 600.3bn an increase of 12.1 per cent over the previous year.

Who offers the best service?

On the surface, Android Pay and Apple Pay are extremely similar products, but they and Samsung Pay all have vital differences that could edge one over the other when it comes to consumer adoption rates in the coming months and years.

"In truth there is little to differentiate these two implementations," said Kevin Curran, senior member of the IEEE. "What will ultimately determine success is the market penetration of the associated hardware platforms and quite possible in the end there will always be two winners happy to divide the market between themselves."

Both services use NFC technology for one-tap payments with an iPhone or Android device, with Samsung Pay also coming into play for Galaxy S6 and S6 Edge phones. Apple Pay is, however, able to boast compatibility with wearables meaning it works with the Apple Watch. Android Pay is currently only available on Android phones, and not yet on Android Wear.

Samsung Pay, meanwhile, doesn't even use the same NFC technology as other mobile payment methods. Instead, it uses Magnetic Secure Transmission technology, compatible with card machines that have a magnetic strip reader. This means, of course, that it's only useable in-store, and not online.

Samsung Pay is due to roll out in the US and South Korea this September.

Jordan McKee, 451 Research's senior mobile payments analyst, offered his thoughts on how the current competitive atmosphere in mobile payments is driving it forward, saying: "The introduction of Apple Pay has catalysed a wave of strategic moves across the mobile payments ecosystem.

"In the wake of Apple's entrance, Google and PayPal have made significant acquisitions, while players such as Facebook and Samsung are rolling out payment products to remain competitive. Moving forward, the pace of activity will only accelerate as vendors look to capitalise on the growing contactless payments infrastructure and secure a foothold in this rapidly evolving sector."

Security matters

Security is obviously a huge concern when it comes to mobile payments, and Google at least attempted to address these worries as it announced its own payments system.

In a blog post published shortly after the announcement at Google I/O, the company reassured Android users that the technology uses "industry standard security tokenisation," and won't send credit/debit card numbers with the payment. A virtual account number will instead be used to represent the account.

"With more consumers willing to give up physical payment methods for a digital alternative, the industry needs to ensure that security of the data is maintained," said Cindy Provin, vice president of global strategy at Thales e-Security.

"Vulnerabilities or a break down in payment services around mobile payment alternatives would limit the uptake of mobile payments. As the mobile payments market continues to grow, and more and more options become available, providers such as Google and Apple will find themselves with a constant challenge to balance the convenience for consumers with ensuring the data and the services are secure."

Banks have increasingly been experimenting with the use of mobile as society appears to move more and more towards contactless payments technology as standard. This includes RBS and NatWest playing around with fingerprint recognition technology, using Apple's Touch ID sensor and allowing users to access their account more securely.

The inclusion of this fingerprint authentification technology for Apple Pay gives the company a significant leg up when it comes to security. Android M is set to change this in the near future by adding uniform OS-level support for the technology, but Google and its hardware partners will still be playing catch-up in this area.

Mark Prior-Egerton, product manager, point of interaction and enterprise product management for The Logic Group, said: "As consumers become more tech-savvy, payment solutions will live and die on their ability to provide them with safe and secure transactions. Whatever the business, whatever the channel, security is non-negotiable. Any company that ignores this mantra will find its reputation, and its ability to sell, endangered."

Who's actually using mobile payments?

But have mobile payments actually taken off in the way these companies expected? According to Apple, more than 220,000 stores across the US including McDonalds and Macy's currently accept Apple Pay. Android, on paper, beats this hands down with over 700,000 store locations and more than 1,000 apps agreeing to use the payments system.

But it's not a done deal, with many believing that things are much less dire for cash and traditional payment methods than people would have us believe.

"A major limitation at the moment is the lack of deployment of contactless payment terminals," IEEE's Kevin Curran added. "What may address this at least in North America is the legislation forcing merchants to support EMV cards by October 2015. If they fail to upgrade, then they will be liable for all fraudulent use of counterfeit, lost, and stolen cards in their stores.

"The field of contactless payment is littered with the graves of many companies who attempted to usher in their perfect' system, but a wind of change does seem to have arrived."

As Dan Salmons, managing director at PayPoint Mobile and Online, puts it, the success of mobile payments relies on maintaining an element of choice for the consumer.

"The worst thing a brand can do is define a consumer by how they wish to pay, or force them down a path they're uncomfortable with," he said.

"Just because cards are now the favourite means of payment, businesses still have to be sure that they are covering a host of payment options when it comes to making their purchase whether that's cash, card or even mobile."

Convenience and a change in culture will be a key driver for contactless payments, it is clear, but whether it can completely take over the payments sector is another matter entirely. Cash persists for now, but that has the potential to change very quickly over the next few years.

A fundamental change in consumer behaviour is often the slowest moving factor in the case of new technology like such as this, but the launch of Apple Pay and Android Pay is well underway and contactless is rapidly becoming more widespread.

Wearables could push this forward even further, though Apple has a head start with the Apple Watch.

"As Android Pay, Apple Pay and other seamless, secure payments options become available to consumers," Judo Payments' Dennis Jones summarises, "it will quickly become the norm to transfer money between both individuals and businesses with a quick tap of our phone."

This article was originally published on 05/06/15 and has been updated multiple times (most recently on 02/09/15)

The majority of iPhone 6 users haven't bothered to even try out Apple Pay, the tech giant's digital wallet, according to a survey.

The report from anti-fraud startup Trustev found that 79 per cent of Apple customers with the latest iPhone models haven't made use of Apple Pay, with many of the remaining 21 per cent of the 1,000 US respondents still using cards or cash as their main payment method.

Of that 21 per cent who have used Apple Pay to purchase goods, 30 percent have stopped using the service completely, with only 2.1 per cent describing themselves as "super-users," with 10 or more purchases a week made using the payments system.

Pat Phelan, CEO of Trustev, said: "Apple Pay is a great system: secure, elegant and convenient. But the slow adoption shows how difficult it is to get consumers to change well-entrenched habits, like paying with card swipes.

"Of course, it is early days, more merchants are coming on board, and I'm sure we'll see adoption grow, but the initial reception has been slow."

Apple announced that it had seen one million activations within 72 hours of the system's launch, and the company claims that one million cards have been added.

According to the survey, 63 per cent of those who are using Apple Pay are doing so because of its convenience.

"It also points to a broader issue: maybe paying with cards is just not that painful," Phelan added. "For years, techies have been pitching e-wallets to consumers, but they don't seem interested.

"Even after Apple has launched by far the most elegant version to date, consumer adoption is light."

Reasons behind the slow adoption of the service could be apathy and ignorance, with the survey finding 50 per cent of respondents simply didn't care, while 34 per cent didn't actually know about the feature.

Samsung has announced its own Apple Pay rival at Mobile World Congress (MWC), working with MasterCard on the money transfer technology.

Set to arrive with the new Galaxy S6 device, Samsung Pay will let MasterCard customers use the smartphone for in-store transactions, marking Samsung's entry into the mobile payments arena alongside Google Wallet and Apple Pay.

While rival companies make use of NFC technology, however, Samsung Pay is compatible with older card terminals with magnetic-stripe technology, due to its partnership with LoopPay, aservice that allows shoppers to upload their credit card details onto a secure payments app, which can be used with payment platforms.

MasterCard's Ed McLaughlin said at the conference: "This is an exciting time for payments. As consumers are increasingly relying on their mobile devices in their everyday lives, we are exciting to work with an industry leader like Samsung to deliver new payment options to our cardholders around the world.

"We have been a pioneer of mobile commerce innovation for years and together we're delivering a digital payment experience that is both simple and secure."

One barrier to Samsung Pay, however, could be the fact that Visa is currently the only company to have agreed to work with LoopPay.

On the other hand, Samsung hopes its platform's compatibility with older payment technology may give it an edge over Apple and Google's services.

The system would still use the same tokenisation security feature as Apple Pay in addition to MasterCard's usual security measures, which hides customers' credit card details by generating a random number for each individual transaction.

"From the start, Samsung's vision for mobile payments and commerce has been centred on security, wide acceptance, and a simple user experience," Dr Injong Rhee, executive vice president at Samsung Electronics, added.

"With MasterCard's tokenisation services in conjunction with Samsung's unique MST (magnetic secure transmission) and NFC technologies, Samsung Pay makes secure contactless mobile payments possible at most NFC or traditional magnetic POS terminals.

"Samsung's KNOX security platform and fingerprint authentication make Samsung Pay transactions highly secure and easy to use."

It was previously reported that Samsung would be launching a payments system in 2015, after teaming up with LoopPay.

Apple Pay was unveiled late last year and is so far considered a success, being adopted by the majority of leading banks and credit card companies following its launch.

Samsung Pay will become available for US consumers in summer 2015, with a wider global rollout to follow soon after.

This story was originally published on 5/2/15 and has been updated since (most recently on 2/3/15) to reflect new information.

Samsung is readying itself to go up against Apple by purchasing US mobile payments startup LoopPay, a direct rival to the company's Apple Pay platform.

The acquisition was rumoured at the beginning of the month, with reports that Samsung was planning to launch some kind of mobile payments system with its Samsung Galaxy S6 device.

"Our vision of inspiring consumers to transition from a physical wallet to a truly digital wallet will continue," LoopPay chief executive Will Graylin said in a blog post. "I'm most excited that Samsung shares this vision and has chosen to help change how we shop and pay for goods and services."

LoopPay allows shoppers to upload credit card details onto a secure app, using the app to subsequently pay for items. The company's technology also lets retailers adopt existing systems to support contactless payments. This gives it an edge over competitors, as LoopPay has the potential to work in 90 per cent of existing point-of-sale terminals.

David Eun, EVP of Samsung's Global Innovation Centre, added: "We are excited to take our relationship with LoopPay to the next level, by bringing consumers a mobile wallet solution that is not just safe and reliable, but also widely accepted at more locations than any competing service.

"Through this deal we can significantly accelerate our mobile commerce efforts. LoopPay's outstanding leaders and team have deep-rooted relationships with banks, card networks and merchants that will complement those Samsung has established over the years."

Samsung's next smartphone release, the Samsung Galaxy S6, is expected to be unveiled on 1 March, prior to the Mobile World Congress.

Google is reportedly in talks to purchase Softcard (formerly Isis), a mobile payments service in direct competition with Apple Pay, sparking speculation the company may be readying itself to take on the consumer electronics giant, reports The Wall Street Journal.

Softcard is owned by AT&T, Verizon Wireless and T-Mobile USA, but is currently searching for a buyer after making more than 60 employees redundant. Google offered $50 million for the company, while PayPal and Microsoft have also reportedly expressed interest.

Google's mobile payments service, Wallet, was somewhat ahead of the curve but hasn't made the impact the company may have hoped after key telecommunications companies, such as Verizon, chose not to collaborate. Softcard has had similar trouble enticing consumers.

Speaking to TechCrunch about the potential acquisition, a spokesperson for Softcard said: "Softcard is taking steps to reduce costs and strengthen its business. This includes simplifying the company's organisational structure and consolidating all operations into its Dallas and New York offices, which involves layoffs across the company.

"We believe these efficiencies will best position Softcard in the marketplace while maintaining focus on serving out market."

Softcard has been losing money for some time, it is being reported, but Google is keen on gaining access to the company's 120 patents as part of the takeover.

Softcard's former chief commerce officer, Ed Busby, added: "It's unfortunate that they've chosen now as a time to scale back. Externally, for the first time since I've been in this industry, the signs are pointing positively for mobile payments.

"I just think everyone realised that this would be a longer haul than people thought going into it, and as a result they aren't willing to make the types of investment that would be required to sustain this."

We recently reported that Apple Pay could arrive in the UK in the first half of 2015, after the service's US release back in October 2014.

Apple is due to expand its mobile payment service to the UK and further abroad next year, according to a job advert posted by the company.

The posting on Apple's recruitment website, which has now been removed, said the tech giant is looking to expand Apple Pay outside of the US.

The advert read: "Apple Pay is a new and exciting area in Apple that is set to expand across Europe, Middle East, India and Africa.

"Apple Pay will change the way consumers pay with breakthrough contactless payment technology and unique security features built right into their iPhone 6 or Apple Watch to pay in an easy, secure, and private way."

Previously, Apple said its mobile payment option would be arriving in locations around the world, but at launch is was only limited to the US.

The job posting was for a London-based intern to "drive out the roll-out" of the service in regions across the world.

"The new London-based Apple Pay team will work to drive the rollout of this technology by working with a variety of internal and external partners, as well as issuers, payment networks and merchants across Europe," the ad continued.

Apple Pay was announced in September and allows Apple iPhone users to pay for good using their iPhone 6's NFC chip. The technology works by linking a credit card to the device and then customers can just swipe their device and authenticate using their fingerprint on the Touch ID sensor.

Though no firm date was suggested by the company, speculation suggests the main team is in place and nearly ready to launch the product in the UK.

The news comes as rumours circulate that Samsung is developing a mobile payment solution, with a possible tie-up with existing mobile payments firm LoopPay, although nothing has been confirmed by either Samsung or LoopPay.

Any Europe-based mobile payment syustem could be affected by proposed legislation the European Union Council of Ministers has put forward that focuses on stronger customer authentication controls and the possibility of licences for some states.

Apple used its iPad Air 2 launch to confirm the final version of iOS 8.1 will be released to iPad and iPhone users on Monday 20 October, and now that day has been and gone we take a look at the new features it has to offer.

The update is designed to build on the mobile operating system Apple introduced with the iPhone 6 and iPhone 6 Plus.

iOS 8 was released in September and was warmly received, until a couple of concurrent bugs emerged, resulting in people losing signal and rendering the Touch ID biometric fingerprint scanner useless.

Apple sought to resolve these via a series of minor updates, but has now pushed out iOS 8.1 to enhance the functionality of the operating system.

The iOS update was officially released yesterday as an over-the-air update or through iTunes.

As is tradition whenever a new Apple mobile operating system drops - some users reported problems while trying to download and install it.

Most of the problems seem to stem from the sheer number of people rushing to download the update all at the same time, with many encountering download delays and interruptions.

Even so, there's no denying that iOS 8 has a lot to offer iPhone and iPad users, as our list of some if its main new features and bug fixes below shows.

Before we start our run through, it's worth remembering that iOS 8.1 is only compatible with the iPhone 4S and higher, the iPad 2 and later, as well as fifth generation iPod Touch devices and above.

Apple Pay

While Apple Pay - the firm's NFC payment system - is only available to US iPhone and iPad users at the moment, the iOS 8.1 update makes it possible for iPad and iPhone users to pay for goods and services using their devices.

The iPhone 6 and 6 Plus both contain an NFC chip allowing users to pay for items in stores by tapping their devices against a compatible point-of-sale sensor, while Touch ID allows them to verify the payment.

iPhones and iPads without NFC technology can still be used to pay for products online using Apple Pay, as the firm has partnered with more than 200,000 US retailers to make this possible.

SMS Continuity with Yosemite

One of the standout features of Apple's reworked desktop operating system OS X Yosemite was Continuity, which allows iPhone and iPad users to open documents stored on their smartphone or tablet remotely from a Mac and take calls.

With the launch of iOS 8.1 this functionality has been extended to SMS text messages. So Mac users can now read text messages from their friends, family and work colleagues sent to their smartphones on the Apple laptop or desktop.

Connectvity improvements

In the release notes for iOS 8.1, Apple claims to have resolved some unspecified Wi-Fi performance issues, as well as another pertaining to problems users have experienced while trying to pair their devices to others via Bluetooth.

Further to this, users now have the option to switch between 2G, 3G or 4G networks when downloading mobile data.

Photos and video enhancements

As discussed at the iPad Air 2 launch last week, iOS 8.1 introduces the iCloud Photo Library as a beta service.

This offering will sync and store any photos and videos users capture on their iPad or iPhone in iCloud, which should - one assumes - free up space on their devices.

The iOS update also introduces a feature that will alert users when space on their devices is running low before they embark on Time Lapse videos, and also fixes an issue that sometimes prevented videos from playing in Safari.

Developers got their hands on the first beta of iOS 8.1 at the end of last month, with the code containing information about the firm's Apple Pay system and also suggesting the fingerprint scanner is coming to the iPad.

iOS 8.1 contains a brand new settings panel, showing options related to credit and debit cards, according to MacRumours. There are also default card/billing address/email/phone options, along with a disclaimer from the company concerning privacy of the feature.

Apple Pay, the payment system being introduced with iOS 8, iPhone 6 and iPhone 6 Plus, is the company's first foray into offering NFC technology to its users.

The new feature means that users can either use the payment information they have already used on iTunes or upload a photo of their card to Passbook and use their device to make purchases thereafter.

There are also reportedly signs of Touch ID being introduced for the iPad, which ties in with the imminent introduction of Apple Pay for the iPhone and Apple Watch.

With Touch ID on the next generation iPad, users would not need to manually input payment data and information when making purchases in relevant apps, though it is unclear whether Apple Pay will become available for the devices or be limited to the iPhone and Apple Watch for the foreseeable future.

The company previously revealed that Apple Pay would be launching at some point in October, and is expected to be a part of the upcoming iOS 8.1 update.

News that eBay would be spinning PayPal off into a separate business broke this week, and now information regarding why PayPal may have been excluded from Apple Pay has emerged via Bank Innovation's Ian Kar.

PayPal is not one of Apple Pay's launch partners, despite talks between the two companies being reported before the payment service's launch, and this is reportedly due to a previous deal made between PayPal and Samsung.

According to the blog post, Apple was on the path to making PayPal a "preferred payment process" for Apple Pay, yet it has emerged that PayPal isn't included in the list of partners. Said list does include many big retailers, banks and credit card companies, such as Visa, MasterCard and American Express.

Negotiations stalled when PayPal partnered with Samsung on the Samsung Galaxy S5 fingerprint scanner instead, however, with Bank Innovation's source describing the situation as Apple kicking' PayPal "out of the door."

eBay CEO John Donahoe was reportedly behind the decision despite resistance from former head of PayPal David Marcus, and the company has now been shut out of Apple Pay as a result. Marcus subsequently left the company for Facebook in June of this year.

The blog post also claims other card company partners of Apple Pay had requested PayPal not be included, which may have given Apple additional reason to end negotiations.

It was announced on Wednesday that eBay and PayPal would be continuing as separate companies from 2015, with John Donahoe saying: "The industry landscape is changing, and each business faces different competitive opportunities and challenges... keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively."

Regarding the story, eMarketer added: "Breaking off from eBay will provide PayPal with more autonomy to compete in the payments space, particularly with respect to Apple Pay and other emerging mobile wallet providers."

One of the biggest talking points surrounding Apple's iPhone 6 and iPhone 6+ handsets, unveiled at the event last week and set to go on sale this Friday, has been the introduction of NFC technology.

Now, however, it has been revealed via an email to CultofMac that the NFC chip present on the new phone and phablet will not be compatible with anything other than Apple Pay.

This means that many of the uses people were looking forward to will be impossible for the near future, such as pairing devices, automating household items and sharing contact information.

Developers will now have to put many of these ideas on hold, as the NFC chip in this case is reportedly being thought of as a feature of Apple Pay, rather than a selling point in and of itself.

This restriction is thought to be continuing for at least the first year of release, though it could go on for longer.

Android devices have had NFC technology for a while, but Apple is tying it tightly to Apple Pay, their secure mobile payments system which will be available on the iPhone 6, iPhone 6+ and Apple Watch.

A number of outlets that will accept these payments, including Disney, Nike and McDonalds, were listed at the Apple event last week.

Apple Pay will use the credit card information they have already collected via iTunes to allow users to make purchases with their iPhone, though they have assured customers that information is actually stored after doing so, decreasing the security risk.

Apple Pay, a proprietarywireless payment service made its debut during the grand unveiling of the iPhone 6/6 Plus and its wearable Watch, last night.

We take a closer look at the technology to ascertain how it works, how secure it is, and find out why it took so long for Apple to launch it.

What is Apple Pay?

It's a wireless payment system that's being introduced as part of iOS 8 for iPhone 6 and 6 Plus users that will allow them to pay for goods and services using their smartphones.

Apple Pay: Fast FactsRelease date: October 2014 in the US. UK date to be confirmed.

Works with: iPhone 6, iPhone 6 Plus and the Apple Watch.

Where can I use it?: At 220,000 locations across the US.

For added security, users won't be able to make a payment unless they keep their finger on the iPhone 6's Touch ID biometric finger scanner during transaction, as this will be used to verify their identity.

Hold up. What is NFC exactly?

As mentioned, it stands for near-field communications and is a set of standards that allows mobile devices, such as smartphones and tablets, to communicate wirelessly with other items when in their vicinity.

Usually, the devices have to be a few centimetres apart, or even touching, for a connection to be established and for a payment to be made.

Does that mean my credit card details will be stored on my iPhone if I want to use Apple Pay?

The device draws on either the credit card details the user has registered with iTunes to pay for goods, or they can take a picture of their credit card and upload it to Apple's virtual wallet, Passbook.

During the iPhone launch event, Apple explained that no credit or debit card numbers will be stored on the device or on the company's servers.

Instead, each device is assigned its own Device Account Number (DAN), which is encrypted and stored on the Secure Element chip in the iPhone or Apple Watch.

Each purchase a user makes is authorised with a one-time unique number using the DAN, before Apple Pay creates another single-use security code to verify the transaction.

What happens if I lose my iPhone or Apple Watch?

Nothing, according to Apple. Thanks to the inclusion of Secure Element, the vendor reckons if your device is lost or stolen, your payment details will be impossible to pilfer. But, we will see.

Does Apple Pay only work with the iPhone 6?

Nope. You will also be able to use the service to wirelessly pay for goods and service using the Apple Watch, once it's released in early 2015. This will also make it possible for iPhone 5, iPhone 5s and iPhone 5c users to use Apple Pay, if they purchase the Watch first.

What's Apple Pay's release date?

Apple Pay is going to be released as a free update to iOS 8 for US-based iPhone 6 and iPhone 6 Plus users in October. At the time of writing, it was unclear if it will also make its debut in the UK around that time or later.

Where can I pay for goods and services using Apple Pay?

During the iPhone 6 keynote, Apple CEO Tim Cook said 220,000 US stores will accept Apple Pay as a form of payment from launch. At present, it's unclear how many in the UK will be in a position to.

Why has Apple introduced NFC now?

Good question. NFC functionality isn't new, and has featured on a slew of Android and Windows Phone devices over the past couple of years.

It was also hotly-tipped for inclusion in the iPhone 5s and its predecessor, but never materialised, which has left some questioning why it's taken Apple so long to join the NFC party.

In 2012, Phil Schiller, senior vice president of worldwide marketing at Apple, shed some light on this while talking to tech site AllThingsD.

During the discussion he suggested baking NFC capabilities into the iPhone was unnecessary, and wasn't something customers were desperate for either.

Instead, he flagged Passbook Apple's virtual storage wallet for loyalty cards, gift vouchers and flight boarding passes as the feature that "does the kind of things customers need today."

According to YouGov stats from 2013, Schiller's assessment of the market demand for NFC appears fair, as just 35 per cent of UK adults said they knew what the technology can do.

This figure is largely the same as the one flagged in the analyst house's 2012 report, adding further weight to Schiller's claims made at the time.

The study, which featured respondents from 1,051 UK adults, also revealed fewer than 10 per cent realised their smartphone was capable of NFC-enabled wireless payments, while 22 per cent made use of it.

The reasons cited in the report as to why uptake of NFC was so low included concerns about the heightened financial risks users fear they face should their device be lost or stolen.

Meanwhile, 56 per cent said they were simply not interested in using NFC technology to pay for items.

Apple has Touch ID and Secure Element as answers to users' security concerns, but how can it encourage more people to use NFC?

Industry watchers have been projecting strong growth in the frequency that users opt for NFC-style payments, as well as total transaction values in the years to come, way before Apple got involved. So, adoption is on the up, albeit slowly.

Apple could feasibly use its iBeacon technology, which uses location data to alert iPhone users to special promotions being offered in nearby stores, to inform iPhone 6 users that the shop they're in a shop that accepts NFC payments.

That would certainly go some way to solving the awareness issue flagged in the YouGov poll, while Apple could capitalise on this further by offering further in-store discounts to people who shun cash and credit cards to buy goods using Apple Pay.