Alternatives to NFC-based payments, such as Apple Pay, are not a feasible solution for customers to use, Australian banks have argued. In a long running stand off with Apple, the Commonwealth Bank of Australia, Westpac Banking Corporation, the National Australia Bank, and Bendigo and Adelaide Bank have made a submission to the Australian Competition and Consumer Commission (ACCC), reinforcing a previous request for NFC access to use their own mobile wallets.
The banks highlight mobile payments and loyalty programmes in other countries, which either use Android with NFC or a non-NFC PoS technology for multiple platforms. They claim that these countries have “less NFC infrastructure in place than Australia, and Android has a much greater presence,” claiming Android’s market share in France is “well over 70%” and “as high as 97%” in India.
“These alternatives are unrealistic in Australia, which has the world’s highest adoption of contactless NFC card payments and one of the world’s highest iPhone market shares, particularly among customers likely to use mobile apps,” the submission states. “ING Direct recently confirmed that 70% of customers who use its banking app use iPhones, which is consistent with the applicants’ experience.”
Apple argues that providing third-party access to NFC would compromise security. The ACCC is expected to deliver a final determination this month.