Analysis of Apple Pay Expansion to Puerto Rico and Market Implications

• Apple Pay Expansion

  • Apple Pay has expanded to Puerto Rico, marking its availability in dozens of countries and regions globally.
  • Banco Popular is the sole Puerto Rican bank supporting Apple Pay, enabling its cards to be used at any location accepting Apple Pay.

• Tap to Provision Feature

  • The feature is now available in Hong Kong, Macao, and Mongolia, allowing users to add eligible credit or debit cards to the Wallet app by tapping their iPhone on the card's back.

• Adding Cards to Apple Pay

  • iPhone users with iOS 12 can add cards via the Wallet app:
    • Tap the “+” icon → Follow prompts to enter new or previous cards (via chip, manual entry, or camera scan).
    • Face ID/Touch ID authentication required.
  • Apple Watch users must use the iPhone’s Watch app, navigate to “Wallet & Apple Pay,” and tap “Add Credit or Debit Card.”

• Strategic Considerations

  • Expansion highlights Apple's focus on global payment ecosystem integration.
  • Tap to Provision enhances user convenience, potentially driving adoption in new markets.

• Market Impact

  • Strengthens competition with other mobile payment services like Google Pay and Samsung Pay.
  • May encourage Puerto Rican banks to adopt Apple Pay to remain competitive.

• Long-Term Effects

  • Could accelerate contactless payments adoption in regions where Apple Pay is introduced.
  • Reflects broader industry trends toward seamless, card-less payment solutions.