Apple Pay might be a while arriving in Australia according to a new report, which claims that the country’s four largest banks are stalling negotiations with Apple so as to hold on to $2 billion per year they earn from merchants for interchange fees.
The reason for this likely relates to the amount of money the banks pull in for these fees, compared to banks in the United States. In the U.S., Apple reportedly earns around 15¢ for every $100 of transactions, while transaction fees come to about $1 per $100. In Australia, meanwhile, banks make the equivalent of just 50¢ per $100 — although Apple is still demanding the same 15¢ cut.
Unlike the U.S., Australia is also further along rolling out NFC payment terminals to the point where it is a standard technology. Two banks already offer Android users the ability to use an Apple Pay equivalent, provided that they download the correct up to do so.
The upshot is that Apple cannot easily argue that Apple Pay represents a new technology — and therefore payment opportunity — in the way that it can in the U.S.
Of the four major Australian banks, National Australia Bank is rumored to be the closest to coming to an agreement with Apple, although it is still a way off from happening.
This isn’t the first time Apple has run into problems down under. Earlier this year, the University of New South Wales in Australia became the latest school to tell students that Apple Watches are banned during exams on the basis that they could allow students to cheat.
Apple has also been denied the ability to trademark the term “App Store” in Australia, accused of stealing the name HealthKit from a local startup, been blamed for misleading customers about the legal returns policy, and blasted for not paying its Aussie taxes.
Aside from that, things are good, though!
Source: AFR
Via: Business Insider
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
3 responses to “Australian banks aren’t in a hurry to say g’day to Apple Pay”
It is the same story here in Australia that we heard form the UK. At first, the banks were not much excited but later on, they opened their gates for the Apple Pay. Likewise here as well. We have to wait and ‘Watch’
There’s a big difference between the UK and Australia, the banks in the UK were strong armed into it when they realised Apple Pay just used standard contactless technology, nearly all of the terminals in the UK have been contactless enabled since ~2011-12. It was either go with the flow or look out dated. Correct me if I’m wrong but that isn’t the case in Australia (yet?)
Note that Australian banks — in their online experience and quality of customer experience — put the US Institutions to shame. We had easy to use online banking and easy transfers (Americans read: wires) well over a decade ago. Note that transfers between persons and institutions are done WITHOUT ridiculous fees. Since moving to the US, all forms of banking have been a hassle. Oh and: we still use checks in the US! Last time I saw a check in Australia was about 15 years ago.