Apple is reportedly is negotiations with Canada's major financial institutions to launch Apple Pay in the country later this year, according to a report from the Wall Street Journal. 

Royal Bank of Canada,Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada all are reportedly involved in discussions with Apple, according to the report. The main obstacle to a deal involves the fees Apple collects on each Apple Pay transaction, according to the Journal.

The payments industry estimates Apple collects 15 basis point of each Apple Pay credit card transaction and half-a-cent for debit. The Journal reported Canadian banks are not too keen on that idea because they are making less these days on credit card revenue. 

Canadian banks also are concerned about the fraud issues U.S. banks recently faced with the Apple Pay onboarding process. Fraudsters were able to load stolen card information into Apple Pay because certain banks did not have proper protocols in place to verify cardholders entering their information into Passbook, which is Apple's mobile wallet. The Canadian banks want more transaction verification options for Apple Pay, but Apple said that would provide a bumpy experience for the user, according to the Journal's report.