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Australian Banks Seek Open Access to NFC Functions of Apple Pay in New Application

A group of Australia's biggest banks have again applied to the Australian Competition and Consumer Commission (ACCC) in a bid to negotiate with Apple over Apple Pay. The banks -- including Bendigo and Adelaide Bank, Commonwealth Bank of Australia, National Australia Bank, and Westpac -- today announced that they have "narrowed" their application with the ACCC to focus on gaining open access to the NFC function integral to Apple Pay.


The new application echoes the banks' original, filed last July, which also included gaining access to the NFC-based mobile payments software in iPhones. Apple currently only allows its own mobile payment system to access the NFC-hardware in its iPhone devices, which banks argue is an anti-competitive restriction that hampers consumer choice. The banks say that while Apple has a "stranglehold" on this technology, no actual competition can take place in the mobile wallet marketplace.
Open access to the NFC function on iPhone is required to enable real choice and real competition for consumers, and to facilitate innovation and investment in the digital wallets available to Australians. Without open NFC access on iPhone, no genuine competition in the provision of mobile wallets is possible and Apple will have a stranglehold on this strategically important future market.
Previously, the coalition of banks also sought to challenge Apple on Apple Pay due to the service's fees. In the new application, the banks decided to eliminate arguments over fees and any other items "the ACCC considered may lead to a public detriment." Prior to the new application, the ACCC had denied the banks' request to negotiate over Apple pay two times last year.
“The applicants are ready, willing, and able to participate in Apple Pay, alongside being able to offer their customers their own mobile wallet products,” payments specialist and spokesperson on behalf of the applicants, Lance Blockley, said.

“This application has always been about consumer choice, and allowing competition between the makers of mobile wallets to offer the best products and features they can to determine which mobile wallet consumers will use. The applicants want to put up their digital offerings head to head with Apple Pay, and let the market and individual consumers decide which best suits their needs.
According to the banks, full access to NFC on iPhone devices "would enable the delivery of substantial public benefits to Australian consumers," across a variety of categories other than mobile payments, including loyalty programs, member security, and other NFC-related cases. Because of these benefits, the banks said they they "have again been supported by nearly all of Australia's leading retailers."

Last week, Apple responded to the Australian banks' continued obstruction of Apple Pay by saying it was damaging to consumers and small business alike, ultimately referring to their request for access to NFC as a potentially hazardous "Trojan horse" scenario. In today's applications, the banks referred to Apple's comments as a "conspiracy theory" and dismissed it as "fantasy."
The applicants flatly reject Apple’s unsupported assertions that the application is about an objection to the fees that Apple wishes to impose, rather than NFC access. Apple’s conspiracy theories about “Trojan horse fees” are similarly dismissed by the applicants as fantasy.
According to Blockley, who spoke on behalf of the banks, the NFC-targeted application is not an attempt to delay Apple Pay's wider support in Australia as it would be offered alongside other mobile wallets -- similar to how Android supports open access to the NFC function. "Any delay or frustration will be as a result of Apple refusing to negotiate," Blockley said.

Related Roundup: Apple Pay
Tag: Australia


Top Rated Comments

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1 week ago
Why do they think they deserve anything at all? You can just complain to the government and demand that a company who has developed a hardware business entirely on its own has to let you use certain features of it.

Apple should say "ok, fine, but you have to turn every 3rd bank branch into an Apple store and your tellers will work for us for free."
Rating: 21 Votes
1 week ago
Apple would rather never offer Apple Pay in Australia than compromise the security of the entire system globally. Australia is a small market by comparison. This will go absolutely nowhere for the banks involved and is a huge waste of time.
Rating: 12 Votes
1 week ago
This is the argument the banks should have used in the beginning. Open access to the NFC functionality is a valid request. Arguing over fees was a losing battle in the court of public opinion. It just looked like greed. Arguing that they want to offer more choice to customers is a winning argument and puts the onus on Apple to deny customer choice. It may be a day late and a dollar short, but it's the right argument to make.
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Apple would rather never offer Apple Pay in Australia than compromise the security of the entire system globally. Australia is a small market by comparison. This will go absolutely nowhere for the banks involved and is a huge waste of time.

How exactly would the security of NFC be compromised? I see people saying this all the time, but to date, no one has actually shown how the security would be compromised.
Rating: 9 Votes
1 week ago
Bastards.
Rating: 9 Votes
1 week ago
The smaller banks need to do whatever it takes to roll the service out and capture the market that is interested in the service. They might over time become bigger banks because of it.
Rating: 7 Votes
1 week ago
This will be interesting to watch. Sounds like the banks are essentially asking for level playing field against Apple. Not sure that's such a bad thing.
Rating: 7 Votes
1 week ago
OH FFS!!!!!

So the ACCC released a draft finding against the banks, with a final and full decision next month. And now, the banks re-apply again with just wanting access to NFC. Why are the banks trying to kick a horse while it is already down and dead with this NFC thing. Maybe the banks should ask their customers what they want, instead of making a decision on their own. Not once has my bank asked me if I wanted Apple Pay, and if they keep going on with these shenanigans, I'll move my business to ANZ.
Rating: 6 Votes
1 week ago
These banks are moronic in making their request, and completely don't understand the concept behind Apple Pay, and it's focus on security. Any iPhone user that would want this is also similarly clueless about the security benefits of Apple Pay. If you want a less secure alternative to Apple Pay, get an Android phone.
Rating: 6 Votes
1 week ago
How do they figure Apple has a "stranglehold" as they frazed it, on mobile wallet market? Last I checked, Samsung, Google and others have mobile wallets. No one is forced to buy or use an iPhone.
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This will be interesting to watch. Sounds like the banks are essentially asking for level playing field against Apple. Not sure that's such a bad thing.


They want government to secure their market share. That is not the role of government.
Rating: 5 Votes
1 week ago

This is the argument the banks should have used in the beginning. Open access to the NFC functionality is a valid request. Arguing over fees was a losing battle in the court of public opinion. It just looks like greed. Arguing that they want to offer more choice to customers is a winning argument and puts the onus on Apple to deny customer choice. It may be a day late and a dollar short, but it's the right argument to make.

The only reason retailers and banks like "loyalty programs" and what not is to gain more information from customers and make money with their data. Apple Pay is so nice and beautiful exactly because this is not possible.
Real benefit programs could be implemented by Apple themselves in form of wallet items, but not automatically shared via NFC. That would basically be a data breach.

It appears they are not very successful. Since ANZ already offers Apple Pay now it's only a matter of time.

Yes because ANZ didn’t request access to the NFC communication. If I was ANZ I would advertise this advantage aggressively.
Rating: 5 Votes

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