Apple Pay helps banks sell mortgages and deposits, ANZ Bank says

ANZ Bank chief Shayne Elliott insists his move to break ranks with rivals and do a deal with Apple to allow easy payments on the iPhone is helping the lender sell a wide range of financial products, even mortgages.

A day after his key rivals suffered a major setback in their brawl with Apple, Mr Elliott on Wednesday stood by ANZ’s move to work with the US technology giant, which is moving into the bank-dominated payments market.

Westpac, Commonwealth Bank, National Australia Bank and Bendigo and Adelaide Bank want to launch a collective boycott of Apple Pay, which requires banks to surrender revenue in order to access the iPhone’s chip that allows tap and go payments.

The ACCC rejected the banks’ request in a draft ruling on Tuesday.

In contrast, ANZ introduced the service to customers in April, and Mr Elliott said the decision was paying off for the lender.

ANZ has previously said Apple Pay is helping it gather deposits, and Mr Elliott said users were also more likely to do other business with the bank, including even taking out a mortgage.

“What we’re seeing is a much higher propensity for people who’ve come to us with an Apple Pay solution to then go on and expand that relationship with us, whether that’s opening transaction accounts, deposits, mortgages, whatever,” Mr Elliott said at a Reuters event in Sydney.

In return for allowing banks to provide Apple Pay to customers, Apple takes a cut of banks’ revenue from payments from credit card providers known as a “interchange fees”. This is a market worth about $2 billion in Australia.

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Source: Apple Pay helps banks sell mortgages and deposits, ANZ Bank says – Sydney Morning Herald