Apple Pay Hits the Mexican MarketBy Andrea Villar | Tue, 02/23/2021 - 11:07
Starting today, iPhone users and businesses in Mexico will be able to start using Apple Pay to make and receive contactless payments. At the moment, Citibanamex, Banorte and American Express are the only banks compatible with the service. Inbursa will soon offer this option as well.
“Today more than ever, our customers want an easy, secure, contactless payment option,” said Jennifer Bailey, Vice President of Apple Pay in a statement. “We are working with banks, payment networks and businesses across Mexico to enable Apple Pay in the country's leading apps and shops,” she added.
For users to be able to make a payment with this product, the business must have Apple Pay support enabled at its retail or online shop. The buyer will only have to double-tap their Apple device’s power button, identify themselves with their fingerprint or FaceID (depending on the model) and hold their smartphone or Apple Watch up to the reader for instant payment. According to Apple, each transaction creates a unique code, which means that the card number registered is not stored in the device or the servers.
“All transactions remain between the user, the retailer or developer and the bank or card issuer. If the customer's iPhone is lost or stolen, they can use the Find My iPhone feature to quickly suspend payments from that device,” the company explained.
Currently, Apple Pay's biggest competitor is PayPal. According to Datanyze, PayPal's worldwide market share is 54.5 percent, followed by Stripe with 18.5 percent and Amazon Pay with 3.78 percent. Apple has only 0.18 percent of the market. However, according to analysts, Apple Pay is growing at a rapid pace. Apple Pay already represents about 5 percent of global card transactions and is on track to account for 10 percent of the them by 2025, according to research company Bernstein. In 1Q20, Apple's service revenue (which includes Apple Pay) exceeded investor expectations and reached US$12.7 billion.
In addition to making online transactions, Apple Pay can already be used to pay for public transport in New York City and Portland. This year, it is set to expand to Washington and Los Angeles.