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I'm confused by this sentiment. Last time I was in Australia about 50% of the stores that I saw had AmEx logos on their doors. Are they a particularly bad bank there or something?

No it is a misbegotten belief that Amex is not widely accepted. 80% of my retail spend (including bill payments) is via Amex.
 
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OK so after just tearing Starbucks to shreds in my comment a few up, I decided to sell my soul & ruin my taste buds, and decided to go to Starbucks Circular Quay to try Apple Pay as soon as I got off the Ferry. I wanted to make sure my first Apple Pay experience was in a launch partner store so that I knew it would work 100%.

It was a huge fail! Didn't work at all. The Starbucks girl had no clue what I was trying to do, and then after I told her Apple Pay launched today (in which she had no clue), she then told me that their EFTPOS machines didn't accept contact-less Amex, only contact-less Visa & Mastercard. After holding up the queue, I folded and pulled out my Visa card.

So simple & convenient they said...

That is a shame - I still come across some retailers that don't have contactless Amex. More recently I have had a few that have contactless Amex but then require a signature. They don't get repeat business.
 
Well at least you got a lovely milky coffee!

I'll be interested to see if Amex/Apple Pay works for transactions over $100.

If it works like contactless Amex you just input your PIN like you do for Visa.
 
OK so after just tearing Starbucks to shreds in my comment a few up, I decided to sell my soul & ruin my taste buds, and decided to go to Starbucks Circular Quay to try Apple Pay as soon as I got off the Ferry. I wanted to make sure my first Apple Pay experience was in a launch partner store so that I knew it would work 100%.

It was a huge fail! Didn't work at all. The Starbucks girl had no clue what I was trying to do, and then after I told her Apple Pay launched today (in which she had no clue), she then told me that their EFTPOS machines didn't accept contact-less Amex, only contact-less Visa & Mastercard. After holding up the queue, I folded and pulled out my Visa card.

So simple & convenient they said...

I LoL'ed so hard. Must be what an experience ;) I am saying it again, not until the big four or at least CBA support ApplePay, will we see a huge increase of Australian using AppePay. The instruments are there, the people are there, but not the bank support, once they do, it will be like opening a gate where people waiting outside will be rushing in.
 
Correct. My CBA issued AMEX is still not working. Only those with Amex cards directly issued by Amex will be able to use Apple Pay, that includes David Jones and Myer issued cards.

I am intrigued by the DJs Amex card as they are in fact issued by Amex as Amex owns the DJs store card "system" and the cards start with the Amex 37 numbers. Just tried a DJs store card (issued by Amex with a 37 number) and it didn't work.
 
Two things. Hardly anyone here uses Amex (MC + Visa is about 80% market share, Diners + Amex is about 20%. This includes companion cards issued by banks. Source: RBA) and Paypass/Paywave has really taken off here in a big way.

People here are very used to whipping out their Visa/MC and paying in 2 seconds flat. The US, as I understand it, doesn't have a lot of contactless pay systems and Apple's ApplePay (and Google's whatever) is helping drive adoption of the system so that people's first experience with a contactless system may very well be using a smartphone, and this will shape their future behaviour, i.e. they will always associate quick, contactless payments with a phone, not a card.

Good luck to Apple, but they will have an uphill battle in Australia.
 
A large proportion of Amex card holders were issued their card by banks and retailers as a second string in addition to a Mastercard or Visa. These Amex cards will not work with Apple Pay. Only Amex cards issued directly by Amex qualify and I doubt that they represent a lot of cardholders. I got rid of my Amex account 15 years ago when I realised that very few establishments in Europe and a dwindling number in Australia actually took Amex without a penalty added to every transaction. Since then I've been issued with an Amex card by the Commonwealth Bank as an adjunct to my Mastercard and offered Amex card by several others. My Amex card cannot be used with Apple Pay. Until Apple Pay thrashes out a deal with Mastercard and Visa it will be pretty much irrelevant in Australia.

Yup, this is beyond pointless as no-one in their right mind should pay Amex for one of their self-issued cards, unless they're spending enough to take advantage of black/Centurion card level perks.

Unless Apple or the big banks back down (fat chance) Apple Pay is a non-starter here.
 
I'm confused by this sentiment. Last time I was in Australia about 50% of the stores that I saw had AmEx logos on their doors. Are they a particularly bad bank there or something?

Background to card payments in Australia...

CONTACTLESS PAYMENT: Has been up and running for 5 years already by simply tapping your credit/debit card on the reader at almost every retailer, or more recently your phone with NFC chip sticker on the back. Apple Pay is not a revolution in Australia, its a "who cares" moment. So instead of tapping your phone or card, you tap your phone or watch. Whoop-de-doo!!!

BANKS: there are four main banks in Australia who dominate banking. They take 82 cents per $100 card payment and they are unwilling to make a deal with Apple to hand over 15 cents when the contactless system that exists is in use everyday by nearly every Australian with a bank account. What's in it for the banks to do a deal with Apple? Nothing except a loss of profit.

AMEX: in Australia has in the past charged retailers EXCESSIVE fees for accepting payments. To share the love, retailers have in the past either decided not to accept Amex or charged customers additional fees on top of their purchase cost.

As a result many many Australians do not now and never will use Amex as they are viewed as overcharging scumbags. Some retailers, presumably in order top pick up the tourist dollar from overseas visitors, now accept Amex but for many Australians Amex carries a lot of negative baggage.

Amex has tried to expand its foothold in Australia by:
- reducing its fees slightly to retailers, although their reputation is ingrained in the Australian psyche and some retailers still charge higher fees for using Amex because the public expects them too.
- introducing co-branded Amex cards with large retailers like David Jones. These will work with Apple Pay as they are genuine Amex cards
- introducing co-branded Amex cards with the four banks (although these are usually supplementary cards to a Visa or Mastercard account with those banks). These are the bulk of Amex cards and WILL NOT WORK with Apple Pay because the banks will not give up their lucrative fees.
 
Until Apple Pay thrashes out a deal with Mastercard and Visa it will be pretty much irrelevant in Australia.

Apple already has a "deal" with the MasterCard and VISA brands. When you add a credit card to your Wallet, the first thing it does is contact their servers. From there, the request goes to your bank. The bank confirms your real account number is valid. Next, the bank retains the DAN and maps it to your real account number. Then, the DAN is stored on your iPhone.

When you make a purchase, your iPhone transmits the DAN instead of your real account number. The transaction processor contacts your bank, who uses the DAN (and other encrypted fields) to determine whether to authorize the transaction. Apple Pay was the first implementation of an EMV tokenization standard that was just released in March, 2014. So, it's not likely your bank already has the system and application infrastructure in place to support it.

The moral to this story: it's your BANK that has to make a "deal". American Express was able to beat MasterCard and VISA to the market in Canada and Australia because they issue their own cards, and service their accounts. MasterCard and VISA are issued by member banks, and the banks service their accounts (unless they outsource it elsewhere).
 
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Sure, but I don't want to enter my PIN. I keep getting it wrong.

Eventually, you shouldn't have to enter a PIN.

Right now, the merchant's terminal thinks you are using a contactless card, and handles it exactly as if you had used the physical card instead of your iPhone. If your card requires a PIN, it will ask for a PIN.

But, buried in the data exchanged between your card or iPhone is a field that specifies what methods of authentication are required, and in what order: PIN, Signature, or None.

It's not difficult to predict that eventually the iPhone will transmit "no authentication required", since it's doing it locally. But, the merchant's terminal will have to recognize that, and may require an update.
 
Stick on NFC chip... What could possibly go wrong?!
To those of you who travel abroad frequently - does this mean that my United States issued American Express card can now be used with Apple Pay in Australia and any other foreign country that now allows Apple Pay for their own residents?

Or is this only for Australian American Express card holders to use in their own country?

Been using it daily here in Seitzerland with my US-issued AMEX and Visa cards for nearly a year.
 
As a result many many Australians do not now and never will use Amex as they are viewed as overcharging scumbags. Some retailers, presumably in order top pick up the tourist dollar from overseas visitors, now accept Amex but for many Australians Amex carries a lot of negative baggage.

Do you count the major grocery retailers (Coles/Woolies), liquor merchants, all department stores, most petrol stations pretty much all major retail chains as "some retailers looking to pick up tourist dollar"?

The Centurion card is not worth the fee unless you are spending $250K+ a year on the specific elements that generate the benefits (travel primarily). The platinum card is losing its value with increased fees but still has a place. I have had Amex since 2006 and its acceptance is increasing, the number of retailers charging a fee is reducing and I use it more than ever.
 
OK so after just tearing Starbucks to shreds in my comment a few up, I decided to sell my soul & ruin my taste buds, and decided to go to Starbucks Circular Quay to try Apple Pay as soon as I got off the Ferry. I wanted to make sure my first Apple Pay experience was in a launch partner store so that I knew it would work 100%.

It was a huge fail! Didn't work at all. The Starbucks girl had no clue what I was trying to do, and then after I told her Apple Pay launched today (in which she had no clue), she then told me that their EFTPOS machines didn't accept contact-less Amex, only contact-less Visa & Mastercard. After holding up the queue, I folded and pulled out my Visa card.

So simple & convenient they said...

If I wanna try I will go to Gloria Jeans instead of Starbucks.
 
I'll add it to my iPhone as a backup on. Add I lose my wallet but I can't see it as more as a hassle to get out my phone, Touch ID, open app get to Card yada yada.

I'll just get my wallet out and tap my card thanks

Edit: actually if you offer me quadruple reward points I might consider it apple
 
I'll add it to my iPhone as a backup on. Add I lose my wallet but I can't see it as more as a hassle to get out my phone, Touch ID, open app get to Card yada yada.

I'll just get my wallet out and tap my card thanks

Edit: actually if you offer me quadruple reward points I might consider it apple
Actually it's more simple than that:
Double tap on home button while in lock screen and tap away... ;)
Considering that majority of people always carry their phones in hand, it will be quicker than digging out your wallet from your pocket or hand bag and trying to locate the right card anyway...
 
People here are very used to whipping out their Visa/MC and paying in 2 seconds flat. The US, as I understand it, doesn't have a lot of contactless pay systems and Apple's ApplePay (and Google's whatever) is helping drive adoption of the system so that people's first experience with a contactless system may very well be using a smartphone, and this will shape their future behaviour, i.e. they will always associate quick, contactless payments with a phone, not a card.

Good luck to Apple, but they will have an uphill battle in Australia.
Part of the problem is, as you say the Australian banks do have contactless pay systems. Hong Kong even more so with their Octopus card. The big 4 have 80% of the credit card market within Australia. So I think Apple has to show the banks why they should pay Apple a percentage of the transaction. Banks don't like sharing their profits and Apple doesn't want to reduce percentage fee. First one to blink will lose.
 
Has anyone found a retailer that is taking Apple Pay? When I tried Coles at lunch time it wasn't working there.
 
Has anyone found a retailer that is taking Apple Pay? When I tried Coles at lunch time it wasn't working there.
Yes, a boutique book store in South Yarra.
Conversation:
"do you have pay wave" - "yes"
"do you take american express" - "yes"
"let's do an experiment, here's my book"
assistant enters amount on the POS terminal
I double click the Watch button
Watch displays "hold close to terminal"
I do
I say "maybe closer"
She hands me the device
I hold the Watch to POS face
Kerching

BOOM (c)
It Just Works (c)
 
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When we'll be able to use ApplePay in Poland?
As far as I know we're the largest market in Europe in terms of contactless payments and yet still I can't use it on my iPhone...

There's everything here, Android Pay, Samsung Pay, everything you can image. Even each of our four carriers have their own system based on NFC. Almost every terminal in whole country accepts contactless payments.
But there's no Apple Pay... :(
 
My local bottle shop, pub, pizza, Shell
Has anyone found a retailer that is taking Apple Pay? When I tried Coles at lunch time it wasn't working there.

Just tried First Choice Liquor across the road. Works fine, but then they asked for ID.
De Der
 
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