Apple Pay Breakfast briefing 6 October 2015

Apple Pay now accepted In store In-app purchases Transport for London

In store UK high street retailers Potential to be many more as uses NFC readers that provide technology for contactless

In-app Extra payment option

London Underground No Oyster card or ticket required iPhone or Apple watch Create account on TfL website to view journeys and payments Simple to apply for refunds when things go wrong

UK Market

Contactless in UK 70 million cards issued 259k bank-owned terminals available £2.5bn spend in 2015 H % of all card transactions in Leeds were contactless

Contactless in UK June 2015 –Over 80 million transactions - trebled since May 2014 –Average spend of £6.98 September 2015 –Transaction limit raised to £30 –Not implemented by all retailers

Apple Pay in UK Apple Pay UK launch 14 July 2015 – 1 million transactions in first 3 days Payment limit £30 With option to accept higher value because it has ID confirmation

Apple Pay available most high street banks HSBC & first direct NatWest Santander Nationwide Lloyds Halifax Bank of Scotland TSB Barclays Coming soon

Apple Pay devices iPhone 6 models Apple Watch 80% of Apple Watch owners use Apple Pay

How to use Apple Pay

How to set up Apple Pay Open Passbook (iOS8) or Wallet (iOS9) Tap to link a new card Photograph your card Add security code And you’re done

14 How to set up Apple Pay

How to use Apple Pay in store

16 How to use Apple Pay

How to use Apple Pay in app

18 How to use Apple Pay in app

How to use Apple Pay on TfL

Competitors

Barclays bPay Sticker, fob, wristband –Purchased separately Pre-loaded from an account –Limited to UK Visa & Mastercard No additional security required Mobile app to track spending & top up on the go

Android Pay Released end 2015 in US Payment available –In store by NFC –In app Direct competitor

Samsung Pay South Korea - released August –1.5 million transactions $30million USA - released 28 September Releasing soon –UK, China & Spain Available on –Galaxy S6 models –Note 5 Uses Magnetic Secure Transmission (MST) so usable on swipe machines

24 Samsung pay

What’s ahead?

Seamless payments Amazon One-Click Differentiates service Drives loyalty

Enabling the “spontaneity economy” High browsing rates on e-commerce But users switch to desktop to checkout –Tricky to enter full details (address & credit card info) on the phone Phone payment can increase the number of spontaneous purchases

‘Zero interaction’ retail experience Pick up an item Scan it in Pay from the app Walk out with your purchase

Loyalty cards Integrating mobile payment with loyalty points to promote seamless checkout Coming with Wallet iOS9

Improving accessibility Wheelchair users may not be able to reach and see PIN pad but holding phone out will be easier People with reduced hand mobility can use fingerprint ID and don’t have to expose security by asking someone else to type PIN No need to remember PIN so easier for people with learning difficulties or mild dementia

What’s ahead? Seamless payments in app could encourage app usage vs response websites More conversions on mobile Increase in smaller purchases

Questions?

References 1. Deloitte Mobile consumer report US satisfaction with use store-purchases/ store-purchases/ 3. Support for UK banks support-for-apple-payhttp://appleinsider.com/articles/15/09/11/uk-banks-lloyds-bank-halifax-bank-of-scotland-add- support-for-apple-pay 4. Contactless payments 5. Barclaycard bPay 6. Samsung pay 7. Android pay 8. Using Apple Pay on TfL using-your-iphone-or-apple-watch-for-tube-travelhttp:// using-your-iphone-or-apple-watch-for-tube-travel 9. Accessibility potentials