A report from The Sydney Morning Herald claims that Apple has been in talks with four of the major banks in Australia to expand Apple Pay into the country, but the fees that the company wants per transaction has been a point of disagreement between all the parties involved.
Apple reportedly charges around 15 cent on every $100 transaction done through Apple Pay in the United States, and the company seems to be asking the same fees in Australia. However, in Australia, the interchange fees is half of what it is in the United States, which makes the 15 cent (or o.15%) fees per transaction tougher to digest for banks.
The Australian banking sector is significantly advanced when compared to the US market. Almost all the major banks in the country have been offering NFC based payment options for Android devices since the last 2 years, so Apple bringing Apple Pay into the country will not bring about a major revolution in the country’s banking segment.
Additionally, the report claims that major banks are not too keen on providing Apple with access to their payment infrastructure since they are investing millions of dollars into building the New Payments Platform, which will have real-time capability, that the Cupertino headquartered company will be able to enjoy without investing a penny. Secondly, banks in Australia realise that being the “interface” when a customer does a transaction will likely fuel their future revenue growth, which is why they don’t want Apple to come in and take their place with Apple Pay.
The report states that Apple will likely launch Apple Pay in Australia first with a smaller bank, since it will better able to negotiate with them.
Apple launched Apple Pay in the United States last year and followed it up with a U.K. launch earlier this year. The company is working on expanding its NFC based payment service to other major markets of the world, including China and Canada.
[Via Sydney Morning Herald]Like this post? Share it!