The four largest Australian Bank announced a boycott of Apple Pay
Although Apple Pay is officially earned in Australia back in November last year, some banks refuse to connect their cards to the payment system of Apple. As reported by Finextra, the largest banks of Australia expressed readiness to boycott Apple and its payment service.
In particular, Apple Pay has been criticized by Commonwealth Bank, Westpac Banking Corporation, National Australia Bank and Bendigo and Adelaide Bank. The main stumbling block is the fee, which the credit institution has to pay Apple for use of the service.
Apple charge a fee from banks every time consumers use their iPhone, iPad or Apple Watch to make purchases. In Australia and the United States Commission for the electronic payment service amounts to 0.15%. In Russia, for credit cards the Commission is 0.12% of the purchase amount, in addition, banks have to pay 45 rubles a year for each card connected to the service.
As stated by representatives of financial institutions of Australia, the American Corporation is going to receive benefits from the use of the service, not doing anything to develop the infrastructure of contactless payments in Australia.
The second point is that Australia’s mobile services are quite developed and many banks have their own payment apps. They don’t want customers to abandon them in favor of Apple Pay.
To protect its interests, the representatives of the banks have prepared a 137-page document to the Commission for competition and consumer protection. The final decision on the boycott will be taken during the month.
In the Apple called such behavior an attempt to “crush the competition and create unnecessary security risks”.