Australian Retailers Back Banks' Right to Negotiate With Apple

Australian retail giant Coles, the Australian Payments Clearing Association (APCA), and the Australian Retailers Association have all expressed their support to allow some of the country's banks to collectively negotiate with Apple over access to its NFC-based digital payment technology (via ZDNEt).

Last month, Commonwealth Bank, National Australia Bank (NAB), and Westpac lodged a joint application with the Australian Competition & Consumer Commission (ACCC) to negotiate with Apple because they want to be able to use digital wallets they have already financed and developed, rather than be tied into using just Apple Pay.

Apple-pay-in-stores-amex
Apple lambasted the banks over the application, and last week the request was denied by the ACCC to give the antitrust regulator more time to consult and consider the views of all the parties involved.

However, in a letter of support sent to the ACCC, retailer Coles argued that giving the banks the ability to negotiate with Apple will enhance the experience for customers, as well as improve the transparency of costs related to credit card processing fees.

We believe the ability to tailor solutions for customers and provide them with greater value should be the driver for customer choice and not a technical lockout that many consumers may not have realized would be imposed when they purchased their mobile device.

The APCA also backed the banks, claiming enabling them to negotiate will encourage greater innovation and enhance competition in the payments markets, and ultimately deliver benefits to consumers and merchants.

"We consider that the exclusivity and restrictions on access to platforms and functionality, by contrast, may tend to stifle innovation and competition," it said.

Meanwhile, retail body ARA argued that if Apple allowed the banks to put their mobile banking apps onto the iPhone, it would give consumers the option to choose.

"We would like to see all customers have a choice of mobile wallets and payment services using the mobile phone they already have and the bank debit and credit cards and loyalty cards they already use," the ARA wrote.

PayPal also wrote to the ACCC, but rather than endorsing the banks' request for negotiations, it said the original application's definition of "mobile wallet" was too broad. The digital payments giant also wrote that the APCA's voluntary Third Party Digital Wallet Security Industry Guidelines should not be mandated without open discussions on standards.

Apple's opinion on the matter remained the same: the company believes the original application shows the banks want to maintain complete control over their customers and blunt Apple's entry into the Australian market.

Related Roundup: Apple Pay

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 14, 2025 5:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are three months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X through iPhone 14 Pro have a...
apple watch ultra 2 new black

Apple Watch Ultra 3 Finally Coming After Two-Year Hiatus

Monday June 16, 2025 8:45 am PDT by
Apple will finally deliver the Apple Watch Ultra 3 sometime this year, according to analyst Jeff Pu of GF Securities Hong Kong (via @jukanlosreve). The analyst expects both the Apple Watch Series 11 and Apple Watch Ultra 3 to arrive this year (likely alongside the new iPhone 17 lineup, if previous launches are anything to go by), according to his latest product roadmap shared with...
Logitech Logo Feature

Logitech Announces Two New Accessories for WWDC

Friday June 13, 2025 7:22 am PDT by
Alongside WWDC this week, Logitech announced notable new accessories for the iPad and Apple Vision Pro. The Logitech Muse is a spatially-tracked stylus developed for use with the Apple Vision Pro. Introduced during the WWDC 2025 keynote address, Muse is intended to support the next generation of spatial computing workflows enabled by visionOS 26. The device incorporates six degrees of...
iPadOS 26 App Windowing

Apple Explains Why iPads Don't Just Run macOS

Friday June 13, 2025 7:46 am PDT by
iPadOS 26 allows iPads to function much more like Macs, with a new app windowing system, a swipe-down menu bar at the top of the screen, and more. However, Apple has stopped short of allowing iPads to run macOS, and it has now explained why. In an interview this week with Swiss tech journalist Rafael Zeier, Apple's software engineering chief Craig Federighi said that iPadOS 26's new Mac-like ...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday June 12, 2025 8:58 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
apple watch ultra snow

6 Features Coming to the Apple Watch Ultra 3

Tuesday February 25, 2025 9:00 am PST by
The Apple Watch Ultra 3 is expected to launch later this year, arriving two years after the previous model with a series of improvements. While no noticeable design changes are expected for the third generation since the company tends to stick with the same Apple Watch design through three generations before changing it, there are a series of internal upgrades on the way. By the time the ...
terminal macos tahoe

Apple's Terminal App Gets Colorful Redesign in macOS Tahoe

Monday June 16, 2025 4:12 am PDT by
Apple's Terminal app is getting a visual refresh in macOS Tahoe, and it's the first notable design update since the command-line tool debuted. The updated Terminal will support 24-bit color and Powerline fonts, according to Apple's State of the Platforms presentation at WWDC25. The app will also adopt the new Liquid Glass aesthetic with redesigned themes that align with macOS 26's broader...
iOS 26 Feature

Apple Seeds Revised iOS 26 Developer Beta to Fix Battery Issue

Friday June 13, 2025 10:15 am PDT by
Apple today provided developers with a revised version of the first iOS 26 beta for testing purposes. The update is only available for the iPhone 15 and iPhone 16 models, so if you're running iOS 26 on an iPhone 14 or earlier, you won't see the revised beta. Registered developers can download the new beta software through the Settings app on each device. The revised beta addresses an...

Top Rated Comments

lchlch Avatar
115 months ago
Translation:
We don't want to pay any processing fees. We want to take everything ourselves.
Score: 20 Votes (Like | Disagree)
Rainbow Evil Avatar
115 months ago
Gotta love these banks' definition of more choice - the ability to choose the bank's wallet app while not supporting Apple Pay so that isn't an option.
Score: 16 Votes (Like | Disagree)
davemack Avatar
115 months ago
Coles, have a look at yourself! I used your "new" self-checkout interface today - it was the WORST!

You have no idea what is means to "enhance the experience for customers"...
Score: 14 Votes (Like | Disagree)
SurferPup Avatar
115 months ago
In Little Britain style, I hope Apple's response is, "iPhone says, nooo."
Score: 12 Votes (Like | Disagree)
fitshaced Avatar
115 months ago
If Apple don't want to negotiate with the Australian banks or open up the NFC chip, Apple if free to not sell the iPhone in Australia.
You make no sense
Score: 12 Votes (Like | Disagree)
uroshnor Avatar
115 months ago
Apple is just as bad - Apple could offer an API to access the NFC chip, or they could use Apple Pay , and its purely Apple's greed that that removes this. Apple is just as greedy as the banks.
If Apple offers hardware access to the NFC hardware in its current form, it would probably lose its EMVCo certification for Apple Pay. Apple went to a lot of effort to be certified at a card present level equivalent to full chip and pin (and thus is limited by your daily transaction limit).

Allowing other Applets would mean downgrading Apple Pay to the same scope/standard as pay wave / pay pass which is capped at around USD $ 50-100 per transaction in most countries.

Apple can't possibly pay for every bank in the world to be certified in conjunction with Apple Pay on the device, and EMVCo certification may not be something a bank wants to do. The Australian banks have tried to shut out MasterCard and Visa from the Australian market previously with their "Bankcard" consortium.

My best guess is Apple's current implementation is based on hardware they don't intend to keep in the product line. As the NXP chipset duplicates functionality in the SEP, I can see Apple wanting to eventually migrate to their custom chipset.

Note that Apple does not give anyone access to NFC under any circumstances , even for functionality that does not compete with ApplePay (eg access control systems). Nor do they give raw access to GPS, Bluetooth, Ethernet , Wifi or Cellular to any 3rd party.

I don't think the Australian Banks have a leg to stand on here.
Score: 12 Votes (Like | Disagree)