BANGALORE: Apple Inc's launch of its own tap-to-pay system using near-field communication in its new iPhones and smartwatches may not be a game-changer after all.

The success of Apple Pay hinges on the willingness of retailers to use NFC-based payment systems, industry experts said.

So far the technology has failed to catch on due to the high costs involved.

An NFC-enabled reader costs between US$250 and US$300 (RM798 and RM958). In addition to that, merchants also need to train staff and set up back-end IT systems.

Apple is betting on the popularity of its iPhones and the convenience and security of its payment system to prompt customers and retailers to make the shift.

The technology will allow iPhone users to pay for anything from office supplies to burgers at the tap of a button, using their American Express Co, Visa or MasterCard bank cards. Reuters