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Cale shifts the parking payment industry with Apple Pay

Parking technology manufacturer Cale is easing customers’ payment experience with the introduction of Apple Pay into its terminals, suggesting a possible shift in non-merchandise based payments.

As parking and paying can be a known aggravation for consumers, Cale is continuing to bring the industry easier and faster options for payment. The parking service will roll out terminals equipped with contactless readers for the ability to pay through Apple Pay.

“[Apple Pay] allows users of Cale to add a way to reduce the friction of paying for parking and since parking is generally a high friction transaction, this will be seen as a good thing by municipalities and companies employing the technology,” said Thad Peterson, senior analyst at Aite Group, Atlanta, GA. “It also adds contactless distribution points for Apple Pay as well as Android Pay and Samsung Pay.”

Parking payment shift
Since Apple Pay’s launch last fall, many retailers from all spectrums of the industry are jumping in to leverage the service. The iPhone feature allows for a faster paying experience in-stores and on location, and retailers are cognizant of that.

For those using Apple Pay, paying for parking promises to become a less aggravating experience at Cale pay stations come July. The machines will also be equipped to accept other contactless payments and mobile wallets.

Although many shopping retailers have already introduced Apple Pay into their practices, mobile wallets are lacking in services such as parking and other retail sectors. This could allude to a shift towards mobile payments in these areas.

The payment machine manufacturer feels this is a logical next step, as its history lies in creating the most up-to-date options for customers. It has made many innovations in the parking payment industry such as becoming the first successful company to introduce EMV Level 2 Chip and PIN solution into transactions.

Areas with existing Cale payment terminals have the option to upgrade with Apple Pay capabilities and, after September, new terminals with the new technology will be available.

To use the feature, iPhone 6, iPhone 6 Plus and Apple Watch users load their Apple Pay accounts with prepaid money. While paying for parking at Cale stations, users can simply open the mobile application and hold their devices near the machine.

Apple Pay difficulties
Although more retailers are introducing Apple Pay options, the road ahead is uncertain for those implementing the service.

Bringing contactless mobile payments to bricks-and-mortar stores continues to be a challenging process plagued with technology difficulties, inexperienced store associates and an evolving landscape (see more).

However, a Capital One executive at the Mcommerce Summit: State of Mobile Commerce 2015 predicted a mass shift to Apple Pay this year and the decline of magnetic stripe payments as more consumers carry their phones on their persons at all times (see more).

“I do not think it will have an impact on Apple in the short term, but the increasing presence of contactless payment terminals will accelerate the growth rate for mobile proximity and contactless card payments,” Mr. Peterson said.

Final take
Brielle Jaekel is editorial assistant at Mobile Commerce Daily