Australian Banks Again Denied Request to Negotiate Over Apple Pay

[MacRumors]

The Australian Competition and Consumer Commission (ACCC) today rejected an application from several Australian banks that sought to collectively negotiate with Apple over Apple Pay, reports Reuters.

Commonwealth Bank, Westpac, National Australia Bank (NAB), and Bendigo and Adelaide Bank sought to enter into group talks with Apple in an attempt to establish a deal that would give them access to the NFC hardware in the iPhone, allowing them to offer their already-established bank-run mobile payments services using the iPhone's NFC chip.

The four banks needed the permission of the ACCC to avoid violating anti-cartel laws, but their request has been officially denied. In a statement, ACCC chairman Rod Sims said the benefits are "uncertain" and "may be limited."

"While the ACCC accepts that the opportunity for the banks to collectively negotiate and boycott would place them in a better bargaining position with Apple, the benefits are currently uncertain and may be limited."

Today's denial follows an initial denial in August, where the ACCC opted to take more time to consider the issue before granting a request that would have allowed the banks to boycott Apple Pay while negotiations took place. The ACCC has now denied the banks both interim and draft authorization, but a final ruling on the request will not come until March of 2017.

Apple vigorously opposed the initial request, stating that allowing banks to access hardware within the iPhone would compromise security, undermine customers' privacy, and harm innovation. The banks, meanwhile, claim access to NFC would give customers more choice and would have "tremendous benefits for the entire Australian mobile payments landscape."

While Apple Pay has been available in Australia since November of 2015 through partnerships with ANZ and American Express, Australia's three major banks -- Commonwealth Bank, Westpac, and National Australia Bank -- have thus far resisted signing deals with Apple to accept Apple Pay.

Recently, Apple inked a deal with Cuscal Payments Group, expanding Apple Pay to more than 30 small banks and credit unions across Australia. The agreement saw Apple Pay becoming available to four million additional Australians.

Article Link: Australian Banks Again Denied Request to Negotiate Over Apple Pay

 

[dehydratedH2O]

While Apple Pay has been available in Australia since November of 2015 through partnerships with ANZ and American Express, Commonwealth Bank, Westpac, and National Australia Bank have thus far resisted signing deals with Apple to accept Apple Pay.

That's a confusing, though grammatically correct, sentence. It seems like ANZ and AmEx have Apple Pay in Australia, but not Commonwealth, Westpac, or NAB, correct?

 

[Mr PB]

I don't know how these banks are seeing how their continued aggression in trying to barter would be perceived as anything other than greedy and consumer-unfriendly. Switched from CBA to ANZ & AMEX as I could read the writing on the wall in this - even removing Apple Pay from the equation, it's been a much better experience.

 

[macman312]

That's a confusing, though grammatically correct, sentence. It seems like ANZ and AmEx have Apple Pay in Australia, but not Commonwealth, Westpac, or NAB, correct?

Yes that is correct.

 

[jclo]

That's a confusing, though grammatically correct, sentence. It seems like ANZ and AmEx have Apple Pay in Australia, but not Commonwealth, Westpac, or NAB, correct?

Yes, that is correct. I rewrote that sentence so it's clearer. I'm sorry for the confusion.

 

[BiscottiGelato]

Does this mean that the NFC is so tied to the security architecture of the iPhone that it will never get opened up to a 3rd party app? Would love to see one day that the iPhone can do all sorts of transit passes in Asia. Asian transit passes occupies half my wallet. Or to mention a pain in the ass as sometimes they can't be stacked if you want them recognized properly.

 

[HiVolt]

It's a shame, really...

Here in Canada we waited 1.5 years before Apple pay finally became available earlier in the year on the major 5 banks. Some tried to have android only NFC bank apps, but they were basically shutting out the other major smartphone ecosystem.
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Does this mean that the NFC is so tied to the security architecture of the iPhone that it will never get opened up to a 3rd party app? Would love to see one day that the iPhone can do all sorts of transit passes in Asia. Asian transit passes occupies half my wallet. Or to mention a pain in the ass as sometimes they can't be stacked if you want them recognized properly.

Apple has enabled transit passes in Japan, so I assume it's possible but I imagine "a deal" has to be set up so Apple gets a piece of the pie, as per usual... Sad though, cuz transit systems are usually struggling for money, unlike big banks or credit card companies.

 

[tmiw]

This decision is probably the best move. Third party NFC access isn't all that related to being able to collectively bargain on Apple Pay terms, except for the kind of third party NFC app the banks in question would rather have instead.

 

[dontwalkhand]

I wish they would open up the NFC, I love Apple Pay but I'd really love that Samsung tap and share thing, and the ability to use NFC printers etc.

 

[krause734]

G'day mate! 'Nother shrimp on the barbie?

Apple should open their own banks and give Visa a run for their money.

 

[dave2010]

The banks never explained what innovation they're talking about. They should innovate on Android pay if it's so wonderfully open and then we can see the benefit, otherwise I'd rather take the extra security of a locked down NFC.

 

[MattSwart123]

Also related to Straya is that Cuscal now supports Apple Pay as well. Cuscal is a middle man that enables various credit unions in Straya to support Apple Pay. Soon your local Credit Union will support Apple Pay whilst NAB, CBA and Westpac argue over their own crappy implementations.

 

[macbeta]

G'day mate! 'Nother shrimp on the barbie?

Apple should open their own banks and give Visa a run for their money.

They certainly have enough money to do that!

 

[the8thark]

G'day mate! 'Nother shrimp on the barbie?

Do you realise that Aussies don't call them shrimp?

 

[flat five]

Do you realise that Aussies don't call them shrimp?

Aussies?
you mean Austrians, right?

 

[stevensr34]

"prawns" please!

 

[flat five]

Apple should open their own banks and give Visa a run for their money.

apple already is a bank.
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Commonwealth Bank, Westpac, National Australia Bank (NAB), and Bendigo and Adelaide Bank

these must just be banks that are businesses and not a Bank bank -> the kind that makes the money.. and owns all the money..
..or else apple wouldn't have much of a chance here.. no chance even..

but i don't think they have to worry about that...

 

[Speedy Dingo]

Thank you ACCC. The remaining big banks just don't want to give up a few cents per transaction to Apple. Never mind that all their customers are wanting the feature or are willing to switch banks. They're losing more money by holding out and not giving customers what they're wanting.

 

[the8thark]

Aussies?
you mean Austrians, right?

Jim would be proud of you.

 

[Smigit]

Apple has enabled transit passes in Japan, so I assume it's possible

I believe that's still just Apple Pay, not Apple opening NFC to third parties in any special way. Apple Pay also works on U.K. Public transport too from memory.

I recall store loyalty cards etc we're going to be available too, but again this is all through partnerships with Apple where what the AU banks wanted was direct NFC access that negated the need for them to work with or offer a cut to Apple.

 

[samh004]

I understand the angle the banks are coming from. However, I would imagine that even if Apple did open up their NFC hardware, these other banks would still not use Apple Pay, and instead just use their own systems. While that may work out well for them, I don't see them accepting Apple Pay after they have done that.

Therefore, it's right for Apple to hold their ground on this. The banks will have to come around eventually... probably some time between March and November (2 years after ANZ) next year

As for shrimps...

 

[ErikGrim]

Withholding ApplePay from customers? That's a bootable offense!

 

[Aussi3]

This is so stupid I'm thinking of switching because of how stubborn the banks are being

 

[Poofy1971]

I don't know how these banks are seeing how their continued aggression in trying to barter would be perceived as anything other than greedy and consumer-unfriendly. Switched from CBA to ANZ & AMEX as I could read the writing on the wall in this - even removing Apple Pay from the equation, it's been a much better experience.

Me too, loving ANZ and Apple Pay.

 

[simonmet]

I don't know if I'd go so far as to switch banks because Commonwealth has by far the largest ATM network when you consider they own all the ATMs in 7-Eleven too.

But I will consider opening another account with an Apple Pay supporting bank or credit union soon if CBA doesn't get its act together.
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apple already is a bank.
[doublepost=1480392110][/doublepost]
these must just be banks that are businesses and not a Bank bank -> the kind that makes the money.. and owns all the money..
..or else apple wouldn't have much of a chance here.. no chance even..

but i don't think they have to worry about that...

View attachment 675183

No the first three mentioned are big banks, the latter two are subsidiary banks or "businesses" that offer banking services.