Apple Pay boss says CBA, NAB, Westpac risk missing the future of payments
The global head of Apple Pay has put three of Australia’s big banks on notice that the technology giant’s global payments system will steal their customers and they risk being left behind in the development of digital wallets.
Jennifer Bailey said in an exclusive interview that Apple is so confident of the supremacy of its payments system that “customers will say they are happy to switch banks to use it”.
With ANZ Banking Group the only big four bank to allow its customers to use Apple Pay, The Australian Financial Review can reveal that Macquarie Bank and ING Direct will turn on the service by the end of February. They join 44 other small banks who have all agreed to use the system, pay Apple a fee and to not pass that on to their customers.
Ms Bailey accused the banks holding out on joining Apple Pay – Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corp and Bendigo and Adelaide Bank, who control two-thirds of Australian cardholders – of paying lip service to acting in the best interests of their customers. And their application to the Australian Competition and Consumer Commission for permission to collectively negotiate to boost their bargaining power to take on Apple shows a naivety about how the platform works and Apple’s desire to work collaboratively with banks.
“While initially, in many markets, there have been banks that have initially been wary about working with a company as large as Apple, once they begin to work with us and understand the Apple Pay platform, they see the benefits of it. That hasn’t fully happened with the ACCC applicants, because the conversation is happening through the ACCC process, compared to what normally happens, which is we have the conversation bilaterally.”
Apple Pay is being offered by 3500 banks around the world in 13 countries on the same contractual terms. Apple has repeatedly said it is not willing to deal with the Australian banks on different terms because this could compromise iPhone security and the experience of its customers.
To read more, please click on the link below…