As the race for point-of-sale solutions heats up, Apple (NASDAQ: AAPL) is keen on seizing market share by extending its ‘Tap to pay’ capability to new European countries.
According to a company statement, Apple’s contactless payment functionality will be available in eight more European nations. Per the report, merchants in Belgium, Croatia, Denmark, Cyprus, Iceland, Greece, Malta, and Luxembourg will have access to the feature.
The Tap to Pay feature will allow merchants to receive customer payments by tapping cards or digital wallets on the merchants’ iPhones. Apple says the contactless payment feature will lean on near-field communication (NFC) technology without additional hardware.
“No additional hardware is needed, so merchants can accept payments from wherever they do business,” read the statement.
Apple is collaborating with payment service providers and app developers to extend the reach of the Tap to Pay functionality. Fintech firms in the new regions can integrate the Tap to Pay feature in the iOS versions of their apps, improving the ability of merchants to receive payments.
Several payment platforms across the eight new EU countries have supported the Tap to Pay feature. Global payment processing company Adyen will support the Tap to Pay feature in all countries except Greece, with European neobank Viva making an expansive presence in the list.
Other worthy mentions include Revolut, Stripe, and Worldline, with Apple confirming that PayPal (NASDAQ: PYPL) and NBG Pay will offer support. Furthermore, the statement notes that contactless cards from leading payment networks like Mastercard (NASDAQ: MA) and Visa (NASDAQ: V) will be compatible with the Tap to Pay feature.
However, Apple does not mention stablecoins or digital asset payments for the Tap to Pay feature. Apple has been throwing its weight behind NFC payments, famously extending its proprietary feature to third parties in the EU.
Tap to Pay functionality race heats up
Apple faces stiff competition from other technology giants in the race for contactless payments. Samsung (NASDAQ: SSNLF) has unveiled its Tap to Pay capabilities for digital wallets, supporting Samsung devices and cards that are not assigned to digital wallets.
Google Wallet (NASDAQ: GOOGL) has joined the race with a contactless payment offering for kids, extending the scope to wearable tech like smartwatches. Rising contactless payments are tipped to contribute toward the anticipated $3 trillion in U.S. digital payment volume in 2025.
Digital wallet adoption in Australia surges to a new all-time high
Elsewhere, while Australia’s local payment system is one of the most advanced in the world, new data indicates that digital wallet adoption is on the rise.
GlobalData reported that digital wallet usage in Australia has surged to a new peak, growing by 32.2% over the last year. Per GlobalData’s Payment Instrument Analytics, the total transaction volumes from digital wallets in Australia rose from AUD 126 billion (US$83.2 billion) to AUD 166 billion (US$110 billion).
The spike in digital wallet adoption in Australia is not a flash in the pan but a combination of several key factors. GlobalData lead banking analyst Shivani Gupta revealed that the main factor is changing consumer behavior, with mobile-based payments reaching a peak.
Furthermore, digital wallet service providers have been increasing their market share in Australia since 2020. Currently, Google, Apple, and Samsung are jostling for market share, luring consumers and merchants with advanced functionalities.
For example, Gupta cites Google Wallet’s dual network debit card feature, which is designed to support payments via local and international networks. Others are turning to contactless payment functionalities, with Apple and Samsung gaining traction with their Tap to Pay features.
Digital wallets are onboarding millions of Australians with the additional functionality of QR codes and stablecoin functionalities, streamlining payments for consumers and merchants in the country.
“Like many markets in Asia Pacific, digital wallet adoption is on the rise in Australia, supported by rising consumer preference for mobile payments, and [the] proliferation of digital wallet brands such as Google Pay, Apple Pay, and Samsung Pay,” said Gupta.
These factors have sent digital wallet metrics in Australia through the roof. According to the Reserve Bank of Australia (RBA), nearly 40% of all card transactions in the country are processed through digital wallets.
Per the report, the trend is tipped to continue well beyond 2030 at a compound annual growth rate (CAGR) of 13.7%. The forecast predicts digital wallet transaction volumes to reach AUD 336.1 billion (US$221 billion) by 2030.
Rising adoption rates across the Asia Pacific
The Asia Pacific is the fastest-growing region for digital wallet adoption globally, led by China and India. However, Hong Kong and Singapore are contributing to the soaring metrics with a report tipping digital wallets to surpass credit card use in Hong Kong.
Across the region, cash usage has fallen, fuelled by meteoric digital wallet adoption levels. While the private sector is leading the charge, governments are leveraging digital wallets in the region to disburse funds to citizens, pushing the functionality beyond payments.
Watch: New age of payment solutions
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