Apple Pay to Get a Helping Hand in Europe By Visa
The mobile payment technology launched by Apple Inc. in the fourth quarter of 2014 is slowly but surely becoming a prominent player in the payment system in the United States. Now, the payment system is bound to get a boost in the European market, thanks to Visa Europe, perhaps the most famous payments business located in the region with operations running all over the world.
According to recent reports released by Visa Europe, the company is on the road to equipping its European terminals designed to facilitate contactless payments with the feature to support the tokenization technology.
Coincidentally, this tokenization technology is also the same used by Apple Pay and Google Wallet, hence this comes as great news for both the mobile payments systems, especially Apple Pay, which is newer and has more reach than its Google counterpart.
The incorporation of the tokenization technology in the region’s contactless payments units will culminate by the end of April 2015, according to verified reports by Visa Europe. However, no exact date for the completion of the project has been given out by the company.
Visa Europe is at the forefront for bringing in technology that revolutionizes mobile payments system in Europe, and that is exactly what the company is doing by bringing in the tokenization technology to its infrastructure. Tokenization technology is considered by experts to be the best method of data protection and also the best remedy against mobile payments fraud.
The current system in play at the contactless terminals in Europe is a direct one, one that communicates the actual card details to a terminal whenever users carry out a transaction. This is dangerous, as it leads to credit card frauds and identity thefts.
Apple Pay, on the other hand, has incorporated a tokenized system in its mobile payments system by allocating single-use codes to cards for every transaction conducted, codes that can be traced back to the actual cards by card companies to complete the transaction. This results in a highly secure environment for mobile payments. This is also currently only available in the United States.
However, Visa Europe is now on its way to bringing in a more secure environment to the European market for contactless payments as well. Competitors of the company, MasterCard etc., will surely follow in this respect.
As far as launch of Apple Pay in Europe is concerned, the inauguration of the tokenization technology at Visa terminals in Europe does not guarantee the launch of the service in the continent. In fact, no such announcement has yet been made by Apple Inc. But analysts over at some European banks have been quick to make a sure estimate of the launch date, and they peg the launch of the Apple Pay mobile payment system in Europe no later than Q2 of this year.
And a deal seems to have already been finalized by Apple with Visa regarding the amped up infrastructure. According to Steve Perry, a spokesman on the matter, Apple and Visa have already reached an agreement in this regard. This means Apple Pay can be expected to launch in Europe very soon.