Australian Retailers Back Banks' Right to Negotiate With Apple

[MacRumors]

Australian retail giant Coles, the Australian Payments Clearing Association (APCA), and the Australian Retailers Association have all expressed their support to allow some of the country's banks to collectively negotiate with Apple over access to its NFC-based digital payment technology (via ZDNEt).

Last month, Commonwealth Bank, National Australia Bank (NAB), and Westpac lodged a joint application with the Australian Competition & Consumer Commission (ACCC) to negotiate with Apple because they want to be able to use digital wallets they have already financed and developed, rather than be tied into using just Apple Pay.

Apple lambasted the banks over the application, and last week the request was denied by the ACCC to give the antitrust regulator more time to consult and consider the views of all the parties involved.

However, in a letter of support sent to the ACCC, retailer Coles argued that giving the banks the ability to negotiate with Apple will enhance the experience for customers, as well as improve the transparency of costs related to credit card processing fees.

We believe the ability to tailor solutions for customers and provide them with greater value should be the driver for customer choice and not a technical lockout that many consumers may not have realized would be imposed when they purchased their mobile device.

The APCA also backed the banks, claiming enabling them to negotiate will encourage greater innovation and enhance competition in the payments markets, and ultimately deliver benefits to consumers and merchants.

"We consider that the exclusivity and restrictions on access to platforms and functionality, by contrast, may tend to stifle innovation and competition," it said.

Meanwhile, retail body ARA argued that if Apple allowed the banks to put their mobile banking apps onto the iPhone, it would give consumers the option to choose.

"We would like to see all customers have a choice of mobile wallets and payment services using the mobile phone they already have and the bank debit and credit cards and loyalty cards they already use," the ARA wrote.

PayPal also wrote to the ACCC, but rather than endorsing the banks' request for negotiations, it said the original application's definition of "mobile wallet" was too broad. The digital payments giant also wrote that the APCA's voluntary Third Party Digital Wallet Security Industry Guidelines should not be mandated without open discussions on standards.

Apple's opinion on the matter remained the same: the company believes the original application shows the banks want to maintain complete control over their customers and blunt Apple's entry into the Australian market.

Article Link: Australian Retailers Back Banks' Right to Negotiate With Apple

 

[lchlch]

Translation:
We don't want to pay any processing fees. We want to take everything ourselves.

 

[drumcat]

Next up, some ***** DOA barcode apps.

 

[Persicuta]

The issue is, Aussies have used contactless payments for a while. So I can understand the big banks not wanting to abide by paying the apple fees.

However, I'm all for it. I would love the security of paying through my phone!

 

[oldmacs]

Translation:
We don't want to pay any processing fees. We want to take everything ourselves.

Apple is just as bad - Apple could offer an API to access the NFC chip, or they could use Apple Pay , and its purely Apple's greed that that removes this. Apple is just as greedy as the banks.

 

[davemack]

Coles, have a look at yourself! I used your "new" self-checkout interface today - it was the WORST!

You have no idea what is means to "enhance the experience for customers"...

 

[futbalguy]

Apple is just as bad - Apple could offer an API to access the NFC chip, or they could use Apple Pay , and its purely Apple's greed that that removes this. Apple is just as greedy as the banks.

Working for a financial company, it would be fantastic to have access to NFC for transactions like the completion allows. Apple could definitely open it up to devs but they don't want the competition.

 

[Persicuta]

Coles, have a look at yourself! I used your "new" self-checkout interface today - it was the WORST!

You have no idea what is means to "enhance the experience for customers"...

What? I beg to differ. They're really good! After using the Woolworths ones for a while, the Coles ones are night and day with speed!

 

[smacrumon]

Surprise, suprise, super big duopoly corrupt retailer Coles sides with the banks.
I call BS on this, Coles.

 

[fitshaced]

That's all we needed. A choir for these whingers. If there was more competition in the Australian banking industry, they'd all have delivered what the people want already.

 

[SurferPup]

In Little Britain style, I hope Apple's response is, "iPhone says, nooo."

 

[Rainbow Evil]

Gotta love these banks' definition of more choice - the ability to choose the bank's wallet app while not supporting Apple Pay so that isn't an option.

 

[lchlch]

Working for a financial company, it would be fantastic to have access to NFC for transactions like the completion allows. Apple could definitely open it up to devs but they don't want the competition.

I agree that it's awesome if Apple give developers access to the nfc chip. But only under the condition that nfc access is only available when the app is in the foreground and apps are not allowed to have access to the secure enclave.

 

[odaw]

It's interesting how retail banks now use "transparency to consumers" to nab into someone else's idea. They forget about that when placing their own hidden charges... or selling unselable insurance

 

[fermat-au]

If Apple don't want to negotiate with the Australian banks or open up the NFC chip, Apple is free to not sell the iPhone in Australia.

 

[fitshaced]

If Apple don't want to negotiate with the Australian banks or open up the NFC chip, Apple if free to not sell the iPhone in Australia.

You make no sense

 

[Robstevo]

apple can be considered the greediest in all this argument.they provide zero back end support when transactions happen. the banks are still taking all the risk, processing etc yet apple want a slice of the pie.

Apple tomorrow could solve the whole problem by getting rid of their cut.

another problem is the fact here in Australia paypass is already considered second nature. I can't remember when I didn't use It.

 

[fermat-au]

You make no sense

typo, is not if.

 

[convergent]

Apple is just as bad - Apple could offer an API to access the NFC chip, or they could use Apple Pay , and its purely Apple's greed that that removes this. Apple is just as greedy as the banks.

Its not greed, its simply any business trying to deliver more value to their shareholders. There is nothing wrong with that. I don't think this has anything to do with that however. Why in the world would Apple, as big as they are, want to get into a business model where every retailer has a different implementation of payment system? Part of what I like about ApplePay is its simplicity and speed. Of all things Apple has done recently, its classic Apple "it just works".

In the US, we are just implementing Chip and PIN and its a complete cluster-xxxx. Every store seems to have a different approach and many Americans use Debit cards as credit cards. On some you have to hit the red button, on some the green button (opposites), some you have to sign, some you don't. Most clerks are confused on what to do. Some have a machine you CAN insert the card but want you to swipe, others want you to insert. Then how long do you leave it in??? And I still have cards that don't have a chip yet.

There is also already some customization a retailer can do with ApplePay, because for example Best Buy makes you sign with ApplePay and no other place I've been does.

The bottom line is that this is a payment system being offered by Apple that they are free to implement with their supporting payment pads. If they don't want to accept it they don't have to and can implement anything else they want on their own. But I fail to see how they can claim Apple is a monopoly when people can still choose to use a card, or Google's payment system, or the stores home grown system. That is not a monopoly.

 

[oldmacs]

Its not greed, its simply any business trying to deliver more value to their shareholders. There is nothing wrong with that. I don't think this has anything to do with that however. Why in the world would Apple, as big as they are, want to get into a business model where every retailer has a different implementation of payment system? Part of what I like about ApplePay is its simplicity and speed. Of all things Apple has done recently, its classic Apple "it just works".

In the US, we are just implementing Chip and PIN and its a complete cluster-xxxx. Every store seems to have a different approach and many Americans use Debit cards as credit cards. On some you have to hit the red button, on some the green button (opposites), some you have to sign, some you don't. Most clerks are confused on what to do. Some have a machine you CAN insert the card but want you to swipe, others want you to insert. Then how long do you leave it in??? And I still have cards that don't have a chip yet.

There is also already some customization a retailer can do with ApplePay, because for example Best Buy makes you sign with ApplePay and no other place I've been does.

The bottom line is that this is a payment system being offered by Apple that they are free to implement with their supporting payment pads. If they don't want to accept it they don't have to and can implement anything else they want on their own. But I fail to see how they can claim Apple is a monopoly when people can still choose to use a card, or Google's payment system, or the stores home grown system. That is not a monopoly.

Australia is already far simpler than that. Literally everywhere offers contactless payments - one standard system, and if you have an Android phone with NFC, my bank allows you to pay with your phone through their app. Very convenient, very easy.

 

[fitshaced]

typo, is not if.

Yeah that's not what I meant. What has iPhone sales got to do with it?

 

[kiancheong]

I'm all for choice. Yay for stickers!

 

[lchlch]

Australia is already far simpler than that. Literally everywhere offers contactless payments - one standard system, and if you have an Android phone with NFC, my bank allows you to pay with your phone through their app. Very convenient, very easy.

But if someone steals your card they can still use it. This is not true for Apple Pay.

 

[oldmacs]

But if someone steals your card they can still use it. This is not true for Apple Pay.

And thats a risk I'm more than happy to take, and so are most people. I just want the convenience of NFC through my bank app. Apple Pay is not as convenient anyway for how I bank.

 

[KmanOz]

Well today I just went and opened up an ANZ account. **** them, if they wanna be like that. People who have the ability to move banks and want Apple Pay will vote with their bank accounts. The gall of retailers in Australia. Coles have lost MILLIONS in profit because as it turns out they're **** at retail, so have Woolworths. Aldi came to Australia and showed them how it's done. They have been bleeding us dry for DECADES. Apple don't need to open up access to anything. It's their hardware and their technology.

Meanwhile, retail body ARA argued that if Apple allowed the banks to put their mobile banking apps onto the iPhone, it would give consumers the option to choose.

I agree. That's exactly what Apple Pay is, just wrapped in a great UX but this isn't about options for consumers, this is about greed, greed that they've excelled at for many many years and now it's about to be eroded, much like their businesses due to crappy management and NOT CARING about consumers. Hold out Apple, hold out. As for useless government bodies and retail associations, pfffft, of course they're going to back them, they're paid handsomely. What other purpose do they serve.