Australian banks vs Apple Pay: Apple strikes back

Australian banks vs Apple Pay: Apple strikes back
A couple of weeks ago, four of Australia's largest banks asked the Australian Competition and Consumer Commission (ACCC) to allow them to negotiate as a single body with Apple over its Apple Pay and hardware policies. The banks — Commonwealth Bank of Australia, Bendigo and Adelaide Bank, National Australia Bank, and Westpac Banking Corp — wanted Cupertino to open the iPhone's hardware up for developers (NFC antenna) and allow them to build their own apps with contactless payments. In the meantime, they are boycotting Apple's system altogether.

Today, Apple has responded in a very predictable manner — the company has issued a claim, pointing out that the iPhone's hardware, software, and provided services are deeply integrated, guaranteeing high levels of security. Apple Pay uses a token system when issuing payments – instead of telegraphing the user's credit card or account data to the receiving device, it generates a unique token, which can be used for the exact sum of money and only once, thus making sure that no information leaks out, and tokens can't be spoofed and recycled multiple times. According to Apple, allowing 3rd party access to that chain could potentially put user data at risk and, of course, the company does not want to do that.

But Cupertinians did not stop there. They continued to point out that such an alliance between Australia's biggest banks is akin to a cartel, which would be protected from competition, limit user choice, and slow down innovation. There's also the elephant in the room — banking fees. While the banks' collective request doesn't really mention them, word on the street (and common sense) says that this is exactly what the fight is over. Australian banks earn about 2 billion AUD per year from interchange fees and that's not a pie one is willing to share.

Apple Pay does have a footing in Australia, but is only available to users that own American Express credit cards, issued by the ANZ Bank. Apparently, the company is much more comfortable offering its service in a limited way than entering an unholy alliance, which could spawn a plethora of contactless payment apps with questionable functionality.

source: AFR via Mashable



1. yyzamin

Posts: 383; Member since: Aug 26, 2015

ANZ Bank

9. paul.k

Posts: 302; Member since: Jul 17, 2014


17. yyzamin

Posts: 383; Member since: Aug 26, 2015

They amended the article. Said AMZ

27. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

seriously again.. lol..

33. jasrockett

Posts: 127; Member since: Oct 05, 2011

It's ok it's just New Zealand

2. AlikMalix unregistered

If the Aussie banks want to get on the mobile payment and make their own profit while at it, why don't they build their own platform with its own ecosystem and customer base and control what happens on THEIR OWN devices. You want to ride the Apple train - gotta pay the ticket and play by the rules.

4. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Funny, why is it always like that. All have to play by apples rules, but apple never plays by others rules...

5. AlikMalix unregistered

Way out of context there buddy. I was talking about Aussie banks think they should be able to make money using APPLE'S ecosystem and apples customer base -- not googles, not Microsoft, not some other entity. They want to tell Apple what to do within apples own products. Just like Google, Apple has their rules and guidelines and Apple built its ecosystem to profit from itself. When Google got hit about forcing their apps to be installed on android sets - I backed up Google - because it's googles product, they let manufacturers use it, but it's Google that should set rules because it's their own product. It's not "everyone has to follow Apple rules", it is "everyone has to follow Apple rules when it comes to Apple products"!!!! Don't take it out of context...

18. yyzamin

Posts: 383; Member since: Aug 26, 2015

NFC mobile payments have been here for years, on Android you can use your phones NFC and on iPhone you get a small NFC pay pass card that sticks on the back of your phone under your case. No big issue.

7. der_damo

Posts: 213; Member since: Sep 16, 2014

Yeah, because it's Apple's phone, Apple's work, Apple's engineers and Apple's costs to build the platform so why the hell should they bow to some s**tty banks who just want their part of the cake for no reason.

8. AlikMalix unregistered

Phew, someone else also gets it. RoboticEngi, don't let your disdain for Apple cloud your judgement on this issue. Apple at full right to not allow these banks take over the payment system on apples ecosystem. Plus, do you think there should be more payment systems added to already vast redundant payment systems out there. I mean, Walmart is staring it's own payment system, for crying out loud.

21. talon95

Posts: 1002; Member since: Jul 31, 2012

You're acting like the bank are greedy and taking money from Apple. The banks have their customers who all use plastic and the banks make 100% of the profit. Apple comes along and with some hardware that does nothing without those banks and their customers. Yet Apple wants to set the terms and take a big piece of the pie. Samsung is happy just to sell more devices but Apple always wants more. In the end this will just mean consumers give more money to Apple. I will expect that the price of products bought with an Android phone or good old plastic should be 1% less than we using Apple Pay. Then we'll see if consumers are still happy with Apple and all the money they paid for that iPhone, to incorporate some old NFC tech from 5 years ago, when they have to keep on paying extra for the privilege of a logo.

25. AlikMalix unregistered

You're acting like, The banks are entitled to apples own products and can piggyback ride on their technology for their own gain. Apple doesn't have to cater to anyone business - Apple is a business that is in it to make money, Apple already creates a venue for everyone to make money - it's not like they don't let anyone in - but when you start to dictate how Apple should run their business - that's another story.

13. Subie

Posts: 2416; Member since: Aug 01, 2015

After reading the article it's more about "banking fees", "2 billion AUD". I'm not a fan of big banks, nor agree with all their practices but I'm not surprised to hear that they're banding together against Apple. Who from the bank's perspective is wanting a piece of their cake.

29. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

Well that's very anti-competitive of you lol.. People should have the choice - not be a Nazi company like Apple.. Apple = Nazis.. all of them

11. darkkjedii

Posts: 31541; Member since: Feb 05, 2011

You got owned. Posts 5, and 7.

24. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Owned in what way? Apple isn't a bank, so if they want to get credit cards connected to they apple pay, they should follow the rules of those gives credit cards to people.....Apple themselves are nothing without their customers and suppliers. There are other ways than Apples, some people are just too stupid to see it....

26. AlikMalix unregistered

What the hell are you talking about? Did you read the article? Apple isn't interested in being a bank and it's not even a discussion. iOS is a deliver vehicle for payment transactions. They've set up a way to allow customers to securely and conveniently pay thru the phone. These banks want Apple to allow them to put their OWN program on apples product that already has a program.

30. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

Apple isn't a bank, but it still wants your money. The revenue drive off their payment system is like Paypal, Western Union, etc, they take their cut - so its all about being anti-competitive when it comes to Apple.. If Apple was smart, it would allow the banks to use their hardware, but charge a 1% fee to do so.. Why not give consumers a choice? Oh that's right, PooferTimCock wants all the money to himself, and hates giving consumers choice... I really hope ACCC bans his a$$

28. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

@ AlikMalix - Pretty much all the banks have their own mobile payment system here in Australia, but its on Android only at the moment - because NFC on android phones is open and available for developers, unlike Mr closed buttcheeksApple. Farken Apple wont open their NFC up to the banks so that their apps will work - this is called "Anti-competitive Behaviour" in my books In all of this its the customer's freedom of choice that's being taken advantage of by Apple. ACCC will do the right thing and fcuk Apple in the A$$

3. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Thank god we have apple to defend the public against those who want fees for their services...................

6. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

apple will charge merchants just like banks do and my CC doesn't have fee's just interest for me, apple will be the same. The question is do you want your credit connected to your phone.

15. RebelwithoutaClue unregistered

Apple doesn't charge interest since the payment will be done directly to your CC or bank.

31. cheetah2k

Posts: 2294; Member since: Jan 16, 2011

No but they charge a transaction fee

34. RebelwithoutaClue unregistered

To the vendor, not the Apple pay user

22. lyndon420

Posts: 6871; Member since: Jul 11, 2012

I'm with you there. It's not a good idea at all.

10. wando77

Posts: 1168; Member since: Aug 23, 2012

So Apple claims it would lead to this - 'which would be protected from competition, limit user choice, and slow down innovation'...... ALL things that Apple CONSTANTLY does

16. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Hypocrite talk as usual...

19. yyzamin

Posts: 383; Member since: Aug 26, 2015

Don't mind wando77 we he's always posting hypocritical crap on here

23. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Uhm, I'm not referring to him, what he says is 100% true.

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