Customers of the ANZ Bank can now use their MasterCard credit card to make contactless payments using either Apple Pay or Android Pay.
Advertisement
In a submission to Australia’s competition regulator, made public today, Apple warned against perpetuating “oligopolistic banking market conditions” in Australia, by letting banks that represent two thirds of Australian card holders join forces. The company added that it does not restrict partners, particularly when it comes to developing their own iOS apps. By taking part in sluggish discussions, the pace of innovation within the mobile wallet realm would stall. “Apple designs its products to provide very secure experiences, especially where payments are concerned”, it said. Apple hasn’t opened up its hardware for any of these institutions, and it has no intention to start now.
The addition of MasterCard is an important plug in a hole for ANZ who are the market leader in the third-party wallet space, being the first bank to offer Apple and Android Pay.
ANZ customers will be able to make payments from their devices in store, within apps and soon on the web, if they have an iPhone SE, iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, Apple Watch, and the latest versions of iPads.
In addressing the banks’ argument on wanting to standardise security standards across the mobile payment system, Apple said it opposes adhering to guidelines such as the one the Australian Payments Clearing Association (APCA) had sought to introduce at the end of a year ago as part of the Third Party Digital Wallet Security Code.
“The applicant banks would have little incentive to compete amongst themselves to develop the best and most innovative presentment methods for their customers”, the tech giant argued.
The only effect that the proposed collective bargaining/boycott could have is to further delay, or even block, the expansion of Apple Pay in Australia.
“The applicant banks would know that they can continue to hold out without the threat that one of their competitors will introduce Apple Pay for their customers, which could result in the loss of some customers who will switch banks in order to access Apple Pay”. Unlike users of Samsung and Android, Apple is blocking access to the NFC function and wants to leave iPhone users with no choice but to use Apple Pay.
Apple suggested that this would lead to less security, less privacy, and less convenience in relation to mobile payments in Australia.
Commonwealth Bank, NAB, Westpac, Adelaide Bank and Bendigo have applied to the Australian Competition and Consumer Commission (ACCC). However, the ACCC has recently denied the request given the complex nature of the issues and the limited amount of time.
Advertisement
Apple in return has accused the banks of exhibiting cartel-like behaviour, stifling competition and creating undue security risks.
