MONEY

Some area banks to use Apple Pay

Jeff Ayres
The Clarion-Ledger

Some financial institutions based in or with strong presence in Mississippi say they plan to take part in the new Apple Pay system that launched this week, and others may follow.

Regions Bank, Renasant Bank and Keesler Federal Credit Union are among the reported 500-plus financial institutions nationwide that will use the wallet-free payment system, which allows shoppers to use either the iPhone 6 or iPhone 6 Plus with iOS 8.1 capability to make payments at transaction terminals compatible with the system.

Participating retailers include McDonald’s, Subway, Walgreens, Whole Foods, Chevron, Texaco and Office Depot. Apple Pay will work with Visa, MasterCard and American Express cards issued by many major national banks but also a slew of regional financial institutions, too. The Wall Street Journal estimates the system will cover 83 percent of card-based transactions in the U.S.

Neither Regions nor Renasant has announced a specific date for when they will start supporting the system.

“We are committed to providing banking options that fit the lifestyles of today’s consumers, and offering this service is a natural extension of that commitment,” said Regions spokesman Mel Campbell.

Renasant’s start date will depend on ensuring operations systems are compatible between the Tupelo-based bank chain and Apple, says Renasant spokesman John Oxford. He said the company “fully intends to embrace Apple Pay ... in the near future.”

Others haven’t yet announced their intentions. Trustmark Bank spokeswoman Melanie Morgan said the Jackson-based banking company is evaluating its options but acknowledges Apple Pay is a logical step forward in an era where 24-hour, seven-day-a-week banking is possible for customers through the Internet.

Randy Burchfield, a spokesman for Tupelo’s BancorpSouth, said that bank, too, is currently deciding whether to participate. The company is talking to vendors to make sure they have the necessary technological capability to use Apple Pay and surveying customers to gauge their interest.

“Our customers’ desires and preferences are at the forefront of our deliberations,” Burchfield said.

But any Mississippi bank that issues debit cards through Visa could potentially support the system, especially as the debit/credit card company has announced its broad support of Apple Pay through Visa Token Service.

It enables users to create digital accounts, or “tokens,” that can electronically store on a mobile device information typically found on plastic cards. The company says it plans to eventually roll out its service “to all of its U.S. clients.”

While Apple Pay has ridden the wave of buzz surrounding the new iPhone 6 and iPhone 6 Plus, Renasant customer questions about the payment system have been fairly light so far, Oxford said, perhaps because some major retailers that do business in Mississippi, notably Walmart, have not yet committed to supporting the system.

The Wall Street Journal estimates about 220,000 retailers and restaurants nationwide will use Apple Pay.

Contact Jeff Ayres at (601) 961-7050 or jeff.ayres@jackson.gannett.com. Follow @jeffayres71 on Twitter.