Australian Banks Challenge Apple Over Mobile Payment App Restrictions

[MacRumors]

Three of Australia's biggest banks have lodged a joint application with anti-trust regulators to negotiate with Apple over gaining access to the NFC-based mobile payment hardware in its smartphones (via Reuters).

Commonwealth Bank, National Australia Bank (NAB), and Westpac have so far resisted signing deals to use the company's Apple Pay mobile payment system, because they want their customers to be able to use digital wallets they have already financed and developed.

However, none of the banks want to be accused of violating anti-competition law by negotiating deals, which is where the application comes in.

If the Australian Competition and Consumer Commission (ACCC) lets the banks collectively negotiate with Apple under the terms of the application, it would enable them to undertake "a limited form of boycott" in which they would all agree not to negotiate with Apple individually while the talks take place.

Apple currently only allows its own mobile payment system to access the NFC-hardware in its iPhone devices, which banks argue is an anti-competitive restriction that hampers consumer choice.

"This is about providing Australians with real choice and better outcomes," said Lance Blockley, a senior advisor at Novantas who spoke to The Sydney Morning Herald on behalf of the banks.

"If successful, the application would have tremendous benefits for the entire Australian mobile payments landscape including for public transport fares, airlines, ticketing, store loyalty and rewards programs and many more applications yet to be developed."

Apple Pay launched in Australia in November, but has since been slow to roll out in the country. The delay was thought to be down to issues Apple was experiencing negotiating fees with the nation's largest banking institutes.

Three months ago it added Apple Pay support for credit and debit cards from the Australia and New Zealand Banking Group (aka ANZ), the only bank in Australia's "Big Four" that played no part in the latest application.

Article Link: Australian Banks Challenge Apple Over Mobile Payment App Restrictions

 

[bobob]

The same way ANZ is volunteering to let the Bank of America make use of their credit cards.

 

[BigHam]

What bastards. They need to not make their own wallets and get over themselves.

 

[japanime]

The Olde Banking System, shooting itself in the foot once again.

 

[Glassed Silver]

Well, whilst they are at it, I wish iOS was able to read RFID tags for example.
It's quite frustrating to know that the hardware is there, but you can't use it for anything but Apple Pay (which by the way... is nowhere to be seen in Germany, but even if...)

So yeah... Thing is, I'd love to tag a couple of things I seem to frequently misplace or tag boxes in the attic, so when I'm up there all I'd need to do was scan the surrounding tags and immediately be able to find whatever I'm looking for.

Long term goal is to never ever have to look for items longer than it takes to breeze through a couple of rooms anymore.

What bastards. They need to not make their own wallets and get over themselves.

Yeah, let's all praise Apple and dodge when they offer something, willingly weakening competition, because Apple clearly shines the most the less competition they face... /s

Glassed Silver:mac

 

[John Mcgregor]

Bunch of Aussie hypocrites.

 

[fitshaced]

Don't do it. This needs proper regulation and banks can't be trusted.

 

[Reason077]

There are certainly legitimate arguments for Apple opening up NFC access to developers. Things like mobile boarding passes and train ticketing come to mind, where the existing barcode-based solutions can be awkward and insecure.

I'm not sure how letting banks do NFC from their own apps, bypassing Apple Pay, would benefit consumers however. Are Apple's fees for Apple Pay excessive?

 

[hbt15]

If the idiots at NAB, Westpac et al bothered to look at how tremendously ***** their banking apps are they'd realise that even if customers did have access to them they'd prefer to use apple pay anyway.

 

[landroverz7]

The problem is Australia are way too ahead with payment technology. We don't allow signature anymore its all PIN. MasterCard and Visa Paypass is just about everywhere and most people actually use it, and all the major banks have their own mobile payment that allows Android phones NFC to pay. Apple Pay can be considered late to the game. And as all this technology exists and Banks have invested heavily in them, they don't want to give apple any fees and will rather force their customers to use their own solutions. What banks don't understand is Apple Pay is way more secure and convenient to the user

 

[John Mcgregor]

There are certainly legitimate arguments for Apple opening up NFC access to developers. Things like mobile boarding passes and train ticketing come to mind, where the existing barcode-based solutions can be awkward and insecure.

I'm not sure how letting banks do NFC from their own apps, bypassing Apple Pay, would benefit consumers however. Are Apple's fees for Apple Pay excessive?

If the idiots at NAB, Westpac et al bothered to look at how tremendously ***** their banking apps are they'd realise that even if customers did have access to them they'd prefer to use apple pay anyway.

Actually Apple needs to open up NFC and then those banks would be obligated to support Apple Pay, because then they would be stifling competition as they say now.

 

[locksmack]

Australian banks need to get with the program.

They are posting billions of dollars of profit every quarter, but won't pay Apple the pittance to use their payment service that their customers are yearning for. The banks won't listen to their customers that are the ones lining their pockets. Banks in other countries have jumped on board, why can't we?

I'm personally about to shut down all of my NAB accounts (inc mortgage) and transfer to ANZ - at least they listened to their customers on this one.

 

[John Mcgregor]

The problem is Australia are way too ahead with payment technology. We don't allow signature anymore its all PIN. MasterCard and Visa Paypass is just about everywhere and most people actually use it, and all the major banks have their own mobile payment that allows Android phones NFC to pay. Apple Pay can be considered late to the game.

Apple was late to many games so what.

 

[keysofanxiety]

The problem is Australia are way too ahead with payment technology. We don't allow signature anymore its all PIN. MasterCard and Visa Paypass is just about everywhere and most people actually use it, and all the major banks have their own mobile payment that allows Android phones NFC to pay. Apple Pay can be considered late to the game.

Chip-and-pin has been the standard for almost a decade in the UK as well; regardless, Apple Pay seems to be taking off pretty well here. Of course it's a much larger step forward for the US, but it doesn't make Apple Pay less convenient.

 

[BrodieApple]

Commbank has an excellent app. Easy to use, Touch ID support, Apple Watch support.. They're pretty technologically advanced. So if "Commbank Can" why do they want us to use a terrible app rather then using Apple Pay that is a quick and easy experience

 

[diddl14]

Not to confuse things but here in Austria the situation is similar.

Austrian banks have setup a joined venture (https://www.psa.at/unternehmen/eigentuemer/) that has a monopoly on what they call "Debit Issuing Support". PSA has developed their own app that only works on Android (!) as iOS does not provide access to NFC.

In reality they simply refuse to introduce Apple Pay in order to protect their monopoly.

Hope that one day Apple just allows me to use whatever card I have, even if it means paying Apple extra for using the Apple Pay service..

 

[BrodieApple]

Commbank we already have your crappy buy a sticker for the back of your phone open an app and pay by typing a pin in absolute crap experience.

 

[jasonsmith_88]

Apple currently only allows its own mobile payment system to access the NFC-hardware in its iPhones, which banks argue is an anti-competitive restriction that hampers consumer choice.

Commonwealth Bank, National Australia Bank (NAB), and Westpac have so far resisted signing deals to use the company's Apple Pay mobile payment system, because they want their customers to be able to use digital wallets they have already financed and developed.

Translation - we want customers to use our own wallets, so we'll be anti-competitive and prevent consumers from using Apple Pay. We have no problem with anti-competitiveness, if it's us being anti-competitive. But hey, if Apple wants to be anti-competitive by preventing us from using NFC, we'll bitch and moan to no end.

 

[Abazigal]

How would this even work if Apple doesn't let you change defaults? Apple Pay would still be triggered from the lock screen. And if I need to manually unlock my phone and open said app, that kinda defeats the purpose of said app to begin with.

 

[landroverz7]

Apple was late to many games so what.

Apple has been late to the game many times and have done exceptionally well. However, introducing something new when there is no exisiting solution is much easier to gain attraction than introducing when there is already so many solutions. Apple Pay is way more convenient and secure than current solutions, however the banks and so stuck up at using their own systems that I wished they had no system Basically I am just an aussie angry that my bank commbank doesn't support Apple Pay yet, and I am seriously considering changing banks to ANZ.

 

[John Mcgregor]

Apple has been late to the game many times and have done exceptionally well. However, introducing something new when there is no exisiting solution is much easier to gain attraction than introducing when there is already so many solutions. Apple Pay is way more convenient and secure than current solutions, however the banks and so stuck up at using their own systems that I wished they had no system Basically I am just an aussie angry that my bank commbank doesn't support Apple Pay yet, and I am seriously considering changing banks to ANZ.

Almost all banks are like that. I spend a lot of time in Denmark and they are idiots. It makes me sick when i read their plans for mobile payments. Apps are horrible and most don't even come in english.

 

[landroverz7]

Chip-and-pin has been the standard for almost a decade in the UK as well; regardless, Apple Pay seems to be taking off pretty well here. Of course it's a much larger step forward for the US, but it doesn't make Apple Pay less convenient.

Yeah I was comparing more towards USA. In Australia its almost impossible to get a card without chip and pin, they force everyone to use PIN, swipe and signature purchases are not allowed unless the card is international and has no chip. If you don't use paypass or pay wave, tap n pay whatever u want to call, u will be frowned upon from the kid working behind the counter lol. I have seen many instances where the cashier grabs the card out of elderly peoples hands and force to use pay pass as they want to make the queue go faster

 

[bushido]

I wish my iPhone NFC would be able to communicate with other apps. On my old samsung i can check my remaining amount for the canteen on my student id and get access to the rooms via phone. Woth my iPhone i always have to pray theres enough money on my id and take out the id to gain access to rooms. Very inconvenient

 

[jlwarlow]

There are certainly legitimate arguments for Apple opening up NFC access to developers. Things like mobile boarding passes and train ticketing come to mind, where the existing barcode-based solutions can be awkward and insecure.

I'm not sure how letting banks do NFC from their own apps, bypassing Apple Pay, would benefit consumers however. Are Apple's fees for Apple Pay excessive?

Apple will probably open NFC up in the future the same way Touch ID is now used in apps and soon Siri.

 

[peterh988]

Translation - we want customers to use our own wallets, so we'll be anti-competitive and prevent consumers from using Apple Pay.

....And we can monetise all that lovely data that goes unused when people use Apple Pay