blog Keen to use your iPhone and/or Apple Watch to pay for goods and services at EFTPOS terminals around Australia? You’re right out of luck, with Australia’s major banks standing in the way of Apple’s Pay service launching locally. The issue, as it often is, appears to relate to costs. The Sydney Morning Herald reports (we recommend you click here for the full article):
“Fairfax Media understands fees are a big sticking point in the negotiations, with big banks not willing to give Apple a slice of the $2 billion a year they earn in interchange fees, which are paid by merchants for use of payments infrastructure.”
I’m in two minds about this situation. On the one hand, of course Apple is trying to muscle into the payments market. Some banks, such as the Commonwealth Bank, already provide similar functionality to Apple Pay through their own mobile platforms. If Apple wants to get in on the action, it should be paying the banks a rate which they would find acceptable — otherwise, it will not be able to bring them to the negotiating table.
On the other hand, the banks’ mobile transaction platforms are not very well advanced yet. Apple was able to modernise the music and mobile phone industries very well indeed — I would like to see it pushing into the fraught payments sector and simplifying it so that we don’t have to carry around a wallet full of credit and EFTPOS cards any more. Let’s hope it can get some momentum with Apple Pay and give us some space back in our back pockets.
Image credit: Apple