Apple Pay seems like the best way to carry out any kind of transactions. The technology uses the EMV Payment Tokenisation Specification that lets mobile devices to work as contactless credit cards. This works by reading and converting the magnetic stripe into a digital asset that is compatible with any point-of-sale terminals. Worldwide banks accepted to collaborate with Apple on this project even though this would lead to lowering credit card transaction fees. This way, the banks can come up with a better offer than its competition represented by Bitcoin and Merchant Customer Exchange that try to bypass the card network. The world seemed to accept this innovative offer. However, the Australian banks have been hindering the integration of Apple Pay from the beginning.
After the Australian Competition and Consumer Commission ruled against the Australian banks to gain access to collective banking with Apple Pay, there is a new strategy in place. After reviewing their previous proposals, the Australian Banks are now asking ACCC for permission to NFC on iPhone. This is without precedence. Until now, Apple restricted access to its 45 partnered banks which in exchange have to pay for the digital wallet.
If Apple grants access to the NFC function, the Australian banks will enhance the customer care field. They are planning for innovative features within the mobile payments through loyalty programs and better lounge security. On the other hand, Apple’s defend case is built on the presumption that the Australian banks want to avoid the Apple Pay fee by all means.
Lance Blockley, the payment specialist of the applicants, explained this request as a way to enable consumer choice. By owning a mobile wallet, they will be able to offer a new range of services in comparison with Apple Pay. Thus, in the end, it will be up to the user to choose the best offer that suits his or her needs.
The four banks that signed the application to ACCC, namely the Commonwealth Bank of Australia, Westpac, NAB, and Bendigo are describing their move as a way to protect public interest. On the other hand, Apple sees this request as a market danger in disguise. The banks might stifle the market, and they also might want to avoid paying the Apple Pay fees. With both parties standing firm to their positions, it is from now on up to ACCC to settle the case.
Image source: 1