ARA Gets Behind Banks In Apple Pay Dispute
The Australian Retailers Association (ARA) has backed Australian banking players in their dispute with Apple, stating that the potential for mobile wallet and payment innovation will be limited while Apple Pay remains the only app capable of using the iPhone’s NFC function.
The Australian Competition and Consumer Commission (ACCC) is conducting a review into an application by the Commonwealth Bank, Westpac, NAB and Bendigo and Adelaide Bank to collectively bargain with Apple, with the ARA outlining its stance in its submission to the ACCC.
In the submission, the ARA notes that “it is important that consumers and merchants have a choice between mobile wallets and mobile payment services whichever mobile device or platform they have chosen”.
“In our view, for as long as Apple Pay remains the only app that can use the iPhone’s NFC functionality, the potential for innovation in mobile wallets and mobile payments will be limited,” the ARA states.
“A number of banks and merchants overseas have tried to develop mobile wallets and payment services using alternative technologies, but none have been successful.
“The ARA supports the application for collective negotiation on industry standards and guidelines that involve all participants in the industry in the design of security and other processes, rather than relying on individual wallet providers to determine these processes.”
In a separate submission, Coles has stated that it does “not object to the application for collective negotiation on industry standards and guidelines in the design of security and other processes”.
“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 realised would be imposed when they purchased their mobile device,” Coles stated.
The ACCC last week advised that it is continuing its review of the application by the banks to collectively bargain with Apple.