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Apple is 'Intransigent, Closed and Controlling' Say Banks (afr.com)

Posted by msmash on from the my-way-or-highway dept.

Apple is increasingly trying to get banks to implement its Apple Pay mobile payments solutions, but some banks are avoiding Cupertino giant's offer, saying that the company is "closed and controlling". From a report on Financial Review: Three of Australia's big four banks have described technology giant Apple as being "intransigent, closed and controlling" and accused it of attempting to freeload on their contactless payments infrastructure while slowing innovation in digital wallets. In an increasingly acrimonious dispute, Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corp and Bendigo and Adelaide Bank are arguing that the engineering of Apple iPhones prevent them from delivering mobile wallets to millions of customers. This is because Apple Pay is the only application that works with the iPhone's "near field communication" (NFC) antenna, which communicates with payment terminals. In their latest, 137-page submission filed with the competition regulator, the banks argue that by locking them out, "Apple is seeking for itself the exclusive use of Australia's existing NFC terminal infrastructure for the making of integrated mobile payments using iOS devices. Yet, this infrastructure was built and paid for by Australian banks and merchants for the benefit of all Australians."

5 of 289 comments (clear)

  1. I hope Apple Pay will die by fred6666 · · Score: 5, Insightful

    We don't need yet another middle man charging yet another fee. And no, Apple Pay is not free for the end user. There is a hidden fee charged to the bank, which end up being charger to the merchant, which end up being charged to the consumers one way or another.

    1. Re:I hope Apple Pay will die by bbeagle · · Score: 5, Informative

      Apple Pay charges merchants 0.15% which is right in line with MasterCard, Visa, American Express and Discover. https://www.cardfellow.com/cre...

    2. Re:I hope Apple Pay will die by Old97 · · Score: 5, Informative

      Apple Pay doesn't charge the merchants at all. It's the card issuers who pay Apple and they are will to do so because Apple Pay is much more secure than their own systems - chips and strips. It saves the banks money because it drastically reduces the fraud rate. So, no consumers are not paying for this. Another feature of Apple Pay (and Google's version) is that you aren't tied to a bank, a credit card (VISA, MC, etc.). That's what the banks don't like. They want to own the relationship.

      --
      Very often, people confuse simple with simplistic. The nuance is lost on most. - Clement Mok
    3. Re: I hope Apple Pay will die by BlackSabbath · · Score: 5, Informative

      I'm sorry but that's just not true.
      The two systems are vastly different in implementation. Google are acting as a financial intermediary for every transaction through use of a "virtual credit card" which is what is on your phone and what the vendors see (they never see your actual cards as they are only on Google'a servers). As a result, Google have access and knowledge of every detail of every transaction you make using their system. This aligns with their panopticon business model. By effectively acting as a middleman financial institution they don't need any agreement with banks etc. Every transaction you make actually becomes two 1. Google pays vendor, 2. Google charges your bank.

      Apple are not doing this at all, instead they are securely storing your card details on the phone and communicating payment details to and from the vendor and your financial institution. Their system is designed so they don't store your card details nor know about your transactions. However this requires agreement with the financial institutions on the other end.
      http://www.investopedia.com/ar...

  2. Re:shit post by TechyImmigrant · · Score: 5, Insightful

    The NFC terminals were paid for by the merchants. The terminals support several payment schemes.

    It is in my interests as a person who pays for things and as a merchant who pays for and uses payment terminals that IPhone based NFC payments remain as secure as possible and letting thousands of different banks mess with it with thousands of different applications is counterproductive.

    Look beneath the surface and you will see that this is about grabbing a larger share of the merchant's fee.
     

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