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IDC Comment: Apple Pay: Europe Set to Distinguish Reality from Hype

The hype around the launch of Apple Pay has raised both enterprise and consumer expectations around the spread of mobile payments. But it is important to separate this hype from the reality, particularly from a regional point of view.
Moreover, those retailers also already ahead of the curve in terms of their mcommerce app development and the trialing of Apple–s Bluetooth Low Energy (BLE) iBeacon system in-store for push notifications and more targeted marketing opportunities are likely to be able to make the total cost of ownership for integrating Apple Pay add up. How many retailers that will actually amount to will, however, remain to be seen, according to IDC. But they are likely to emerge in Europe first.
But if Apple manages to convince the majority of card issuers in each European market, domestic retailers should be able to embrace Apple Pay. According to a new IDC report – The Present and Future of Mobile Payments in Europe – retailers are aiming to improve customer experience by enabling mobile payments within their own apps. For this reason, IDC believes that retailers in this region will gradually choose to integrate Apple Pay into their mobile applications for iOS devices to support enhanced customer engagement.
“IDC research into NFC and smartphone adoption, along with the importance of winning over the particularly complex financial ecosystem in Europe will present both a challenge and an opportunity for Apple Pay and those retailers willing to back its benefits” concludes Miya Knights, Senior Research Analyst, IDC Retail Insights.
For additional information or to arrange an analyst briefing, please e-mail kanupriya@idc.com.

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