Australian bank boycott of Apple Pay continues as NAB rolls out Android rival

Australian bank boycott of Apple Pay continues as NAB rolls out Android rival

National Australia Bank has launched a new mobile payment service for Android smartphones, NAB Pay, as the country's biggest banks continue their boycott of iOS rival Apple Pay.

Available as part of the bank's Mobile Internet Banking app, customers with a compatible Android mobile device and a NAB Visa Debit Card can start using NAB Pay from today.

Apple launched its own mobile payment service in Australia last year, targeting a country which has readily adapted to the use of contactless tap and pay technology. Unlike its enthusiastic reception in other markets, however, Apple has yet to convince the major banks to come onboard, as they continue to cold shoulder the service in protest over Apple's demands for a slice of interchange revenue.

Apple rival Google, by way of contrast, is working with ANZ, Westpac and other banks to launch Android Pay in Australia in the first half of this year.

NAB's go-it-alone stance follows the signing of ten-year strategic partnership with Visa last year to collaborate on payments innovation and product development for customers. As such, it will be the first bank in the country to adopt the use of digital tokens in place of credit card numbers to provide an additional layer of security.

NAB executive general manager for consumer lending, Angus Gilfillan, says: “Our partnership with Visa is enabling us to significantly invest in our credit and debit card portfolio and act more quickly to deliver innovative solutions for our customers. We have a number of exciting initiatives planned this year and look forward to extending the NAB Pay application to support NAB credit cards in coming months.”

Comments: (3)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 26 January, 2016, 11:21Be the first to give this comment the thumbs up 0 likes

Are Australian banks too cheap to pay the rumored 15-25 bps to Apple for Apple Pay or are they taking Vivek Wadhwa's trojan theory too seriously?

How Apple’s Trojan horse will eat the credit card industry

A Finextra member
A Finextra member 26 January, 2016, 19:04Be the first to give this comment the thumbs up 0 likes

There is no enthusiastic acceptance by the banks outside of the US and the UK. Australi and Canada are Amex only, and there are no participating banks in other markets. Apple's model taking 15bps from the issuers is not viable in many markets as interchange is already very low (e.g. 0.30% on credit cards in Europe, 0.20% on debit).

Balasubramaniam Gd
Balasubramaniam Gd - DBS - singapore 27 January, 2016, 02:57Be the first to give this comment the thumbs up 0 likes

I am quite surprised by the reaction and attitude of the Australian bank given that Australia tops the NFC space and usage in APAC.  On one hand every one knows the flaws in the Android OS and the backdoor infections that are dime a dozen and are a security nightmare, it just doesnt sound right in going ahead with Android instead of a solid Apple OS with much limited back door gaps and the highest level of encryption.  Who is the actual looser in this choice ?

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