25 June 2018
Register for the webinar today

Australian banks lose bitter battle with Apple Pay

31 March 2017  |  12418 views  |  0 Sydney Opera House 2

The Australian Competition and Consumer Commission has denied authorisation to the Commonwealth Bank of Australia, Westpac, National Australia Bank, and Bendigo and Adelaide Bank to collectively bargain with Apple and boycott Apple Pay.

The ruling ends a long-running and often acrimonious battle between some of the nation's biggest bank and Apple over access to the Near-Field Communication (NFC) controller in iPhones. In taking their claim to the ACCC, the banks sought to offer their own integrated digital wallets to iPhone customers in competition with Apple’s digital wallet, without using Apple Pay.

ACCC chairman Rod Sims says: “While the ACCC accepts that the opportunity for the banks to collectively negotiate and boycott would place them in a better bargaining position with Apple, the benefits would be outweighed by detriments."

These would include a significant distortion in competition between Apple and Google for market share, a negative impact on Apple's business model and strategy, and a market which is in its infancy with a range of alternatives to Apple Pay in development.

“Finally, Apple Wallet and other multi-issuer digital wallets could increase competition between the banks by making it easier for consumers to switch between card providers and limiting any ‘lock in’ effect bank digital wallets may cause,” Sims adds.

The banks expressed disappointment in the ruling, saying they will individually review and determine their future strategy for mobile wallets and mobile payments.

“Mobile wallets are currently overwhelmingly focussed on mobile payments, but will soon take in loyalty programs, mass transit ticketing, access, identity and a great number of other future innovations," says spokesman Lance Blockley. "Ultimately there is no technical barrier standing in the way of our entire physical wallet becoming digital. Apple has a stated desire to own the entire mobile wallet, and will use the beachhead into mobile wallets afforded to them by complete control over mobile payments on iPhone to exert control over the rest of the digital wallet. This in our view is aimed at increasing the services revenue they can earn from iPhone users."

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

Oz banks brand iPhone NFC alternatives 'unrealistic'

Oz banks brand iPhone NFC alternatives 'unrealistic'

16 March 2017  |  5413 views  |  3 comments | 5 tweets | 7 linkedin
Apple fears Australian banks will price it out of the market

Apple fears Australian banks will price it out of the market

06 February 2017  |  5815 views  |  0 comments | 7 tweets | 4 linkedin
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  |  7420 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  |  5004 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  |  7889 views  |  0 comments | 12 tweets | 12 linkedin
Australian retailers back banks in Apple Pay fight

Australian retailers back banks in Apple Pay fight

23 August 2016  |  7572 views  |  1 comments | 14 tweets | 12 linkedin
Apple claims early victory in skirmish with Australian banks

Apple claims early victory in skirmish with Australian banks

19 August 2016  |  6374 views  |  0 comments | 9 tweets | 7 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  |  6983 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  |  9325 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  |  9813 views  |  1 comments | 16 tweets | 15 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.aciworldwide.comVisit https://secure.vasco.comVisit https://info.nice.com/

Top topics

Most viewed Most shared
GPS raises £44 million to fund international growthGPS raises £44 million to fund intern...
27941 views comments | 7 tweets | 8 linkedin
ING and BNP Paribas invest in blockchain-powered trade platform TradeIXING and BNP Paribas invest in blockchain-p...
8360 views comments | 16 tweets | 28 linkedin
Spanish banks move ahead with blockchain platform for digital IDsSpanish banks move ahead with blockchain p...
7201 views comments | 20 tweets | 27 linkedin
Brazilian regulators to share data over private blockchain platformBrazilian regulators to share data over pr...
6953 views comments | 9 tweets | 11 linkedin

Featured job

Basic c Euro 120K, Variable Euro 120K - full ben...
Paris prefered London possible

Find your next job