Could Apple Pay Be Your Next Payment?

This August Malaysia saw Apple Pay finally enabled, allowing you to make contactless card payments using your iPhone and Apple Watch. With the Apple Pay logo at merchants’ cash registers at certain outlets in the country, you probably think that this is nothing new since Samsung Pay could do the same thing when it was first introduced nearly six years ago. However, Apple has added a couple of bells and whistles which makes it more convenient than Samsung Pay.
With the roll out, Apple Pay currently supports cards issued by three banks in Malaysia namely AmBank, Maybank and Standard Chartered. Both AmBank and Standard Chartered only support credit cards, while Maybank supports credit, debit and also prepaid cards. Once you’ve added the cards, it will work with any contactless card terminals both in Malaysia and overseas.
A report from local media suggests that other contactless payment services such as Samsung Pay, Visa PayWave or Mastercard PayPass require customers to enter a PIN for transactions above RM250; Apple Pay users can simply authenticate these transactions through Face ID, Touch ID or passcode. With Apple’s tokenisation technology to safeguard bank details, Apple Pay can allow transactions for any amount without entering PIN numbers at all. This means you can use Apple Pay to make a quick RM1,000 payment from your iPhone or Apple Watch. The only limit is the permitted amount set by your bank. If you’re using a debit card, the purchase limit for Apple Pay will follow your set limit which you can change via your online banking app or website.

Going beyond just physical in-store transactions, Apple Pay is also enabled for in-app payments and websites. Instead of entering your credit or debit card details with eCommerce platforms, you can just choose “pay with Apple Pay” for a faster checkout process and you won’t even need to wait for the OTP via SMS.

The “Pay with Apple Pay” feature is currently supported on Shopee, Sephora, Atome and Adidas. Currently the Apple Pay integration for websites is currently supported on the Safari browser across the iPhone, iPad and Mac. Similar to in-store payments, you’ll have to authorise the transaction using your device’s Face ID, Touch ID or passcode.

Features not available for Apple Pay in Malaysia.

It is worth mentioning that features such as Apple Card, Apple Cash and money transfers via iMessage are not available in our market just yet. Another feature that’s missing is the rewards or cashback when using Apple Pay. This hangs heavy when compared to Samsung Pay that provides points for every transaction which you can use to redeem vouchers and other promotional items. On the other hand there are several eWallets in Malaysia offering coupons, coins and points for each eligible transaction.

Digital payments propel Malaysia into the next FinTech wave!

Reports from various banks suggest that customers are rapidly adopting digital payments in Malaysia. In 2021, digital transactions reached the 7.2 billion mark, registering a 30% year-on-year growth. A report from Bank Negara Malaysia noted that last year an average person made 221 digital transactions, up from 170 in 2020. A study by the Malaysia Digital Economy Corporation (MDEC) and IDC suggested that the gross transaction value of e-commerce in the country would reach RM25.2 billion ($6 billion) by the end of 2022.

Malaysia is only the second country to get Apple Pay in Southeast Asia after the service was launched in neighbouring Singapore in 2016. It definitely has a long way to go with Samsung Pay established since 2016 and having a wider support for both local and international banks.

Today, Apple Pay is available in over 60 countries and regions, and works with more than 10,000 bank and network partners worldwide. So will you double press the power button on your iPhone or double press the side button on your Apple Watch the next time you are out and about shopping in the city?

Blog by NG