29 April 2017
visit nextgenbanking.co.uk

Apple fears Australian banks will price it out of the market

06 February 2017  |  4941 views  |  0 Sydney Opera House 2

Apple has accused some of Australia's largest banks of wanting to price its mobile payment service out of the market and at the same time condition consumers to accept a fee-based model for tap-and-pay transactions for their own mobile wallets.

In its latest submission to the Australian Competition and Consumer Commission, Apple once again raises the spectre of diminished competition in the country's nascent mobile wallet market.

"It may well be that the applicant banks have taken the view that customers may be more willing to pay fees to use Apple Pay," the statement reads, "and on that basis see an opportunity to introduce and condition the market to transaction fees for the use of Apple Pay, with the longer-term view to setting a precedent for charging for mobile payments on other digital wallets, in the future, including the banks' own proprietary wallets."

It is the latest salvo in a bitter dispute between Apple and five of the country's biggest banks - Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide Bank - who were seeking permission from the competition watchdog to engage in collective negotiation and boycott activities with Apple in relation to the roll out of Apple Pay in Australia.

In December, the Commission issued its provisional ruling, coming down in support of Apple and expressing concerns that a ruling in favour of the banks could reduce or distort competition in a number of markets.

The banking consortium controls 70% of the Australian card market, giving the banks "the means, motive and opportunity to disadvantage Apple Pay by pricing Apple Pay transactions above transactions made using their own proprietary issuer digitial wallets to dissuade cardholders from using Apple Pay," states Apple, adding: "Any rational economic player would be expected to take advantage off that opportunity."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Australian watchdog comes down on side of Apple in bitter bank dispute

Australian watchdog comes down on side of Apple in bitter bank dispute

29 November 2016  |  5477 views  |  0 comments | 9 tweets | 11 linkedin
Apple Pay's Australian travails eased by Cuscal deal

Apple Pay's Australian travails eased by Cuscal deal

10 November 2016  |  4033 views  |  1 comments | 3 tweets | 6 linkedin
Australian banks pull no punches in acrimonious Apple Pay dispute

Australian banks pull no punches in acrimonious Apple Pay dispute

17 October 2016  |  7116 views  |  0 comments | 12 tweets | 12 linkedin
Oz banks step up Apple Pay row

Oz banks step up Apple Pay row

30 August 2016  |  6017 views  |  1 comments | 14 tweets | 5 linkedin
Australian retailers back banks in Apple Pay fight

Australian retailers back banks in Apple Pay fight

23 August 2016  |  6656 views  |  1 comments | 14 tweets | 12 linkedin
Apple hits back at Australian bank 'cartel' in Apple Pay fight

Apple hits back at Australian bank 'cartel' in Apple Pay fight

10 August 2016  |  6238 views  |  6 comments | 10 tweets | 3 linkedin
Fintech founder calls Aussie banks hyprocrites over Apple Pay complaints

Fintech founder calls Aussie banks hyprocrites over Apple Pay complaints

29 July 2016  |  8472 views  |  2 comments | 14 tweets | 9 linkedin
Aussie banks team up for Apple Pay legal challenge

Aussie banks team up for Apple Pay legal challenge

27 July 2016  |  8713 views  |  1 comments | 16 tweets | 15 linkedin
Apple Pay picks up 1 million new users a week; comes to ANZ customers

Apple Pay picks up 1 million new users a week; comes to ANZ customers

27 April 2016  |  12878 views  |  0 comments | 20 tweets | 22 linkedin

Related blogs

Create a blog about this story (membership required)
visit dh.comvisit vasco.com/news/PSD2-compliant-solutionsFind out more

Top topics

Most viewed Most shared
Six global banks join Swift DLT trialsSix global banks join Swift DLT trials
7835 views comments | 16 tweets | 36 linkedin
BBVA steps up fintech acquisition strategy with purchase of OpenpayBBVA steps up fintech acquisition strategy...
7040 views comments | 17 tweets | 16 linkedin
Should central banks open up payment and settlement systems to non-banks?Should central banks open up payment and s...
6155 views comments | 22 tweets | 21 linkedin
JPMorgan formally quits R3JPMorgan formally quits R3
6053 views comments | 23 tweets | 14 linkedin
Token raises $15.7 million as PSD2 approachesToken raises $15.7 million as PSD2 approac...
5970 views comments | 20 tweets | 20 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job