Apple Pay has arrived at National Australia Bank (ASX: NAB), will it boost the share price?

NAB is one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and customers. However, in 2018, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending.

Apple Pay Arrives At NAB

From yesterday, NAB customers can now use Apple Pay, making it the latest bank to offer access the service. Australia and New Zealand Banking Group (ASX: ANZ) was the first to offer the service.

If you’re unfamiliar with what Apple Pay does, it gives customers a way to pay for things via their iPhone, Apple Watch, iPad or Mac. It’s available for NAB personal and business customers with a NAB card.

For those of you worried about security, the actual card numbers are not stored on the device and each transaction is authorised with a one-time unique ‘dynamic’ security code.

The online shopping with Apple Pay is verified by Touch ID or Face ID.

NAB Chief Customer Experience Officer Rachel Slade said: “We’ve been hearing from customers that they want Apple Pay and it’s great to be able to launch this service today.

We’re continuing to listen to customer feedback and take action to become the bank our customers want. As part of our transformation we are investing significantly in our technology and digital services to support our customers to manage their money how they choose.”

Will This Boost NAB?

Whilst the technology is certainly cool, it won’t do a whole lot for NAB in my opinion.

Not everyone has an Apple device and most of NAB’s profit is generated from loans, not transaction fees. However, it might be a little bit like letting the fox into the chicken coup. The more power tech companies get, the less power the banks have.

With the recovery of the NAB share price over the last two days, I don’t believe NAB shares are worth buying based on this news. I think it would be better to buy the reliable ASX shares in the free report below.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.