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 Pocket Short

iPhone Pocket is Now Completely Sold Out Worldwide

Tuesday November 25, 2025 7:16 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released. iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
Netflix Smaller 4

Netflix Kills Casting From Its Mobile App to Most Modern TVs

Monday December 1, 2025 4:36 am PST by
Netflix has quietly removed the ability to cast content from its mobile apps to most modern TVs and streaming devices, including newer Chromecast models and the Google TV Streamer. The change was first spotted by users on Reddit and confirmed in an updated Netflix support page (via Android Authority), which now states that the streaming service no longer supports casting from mobile devices...
Cyber Week Deals 2025

Best Cyber Week Apple Deals Include Big Discounts on AirPods, Apple Watch, and More

Sunday November 30, 2025 7:33 am PST by
Cyber Week is here, and you can find popular Apple products like AirPods, iPad, Apple Watch, and more at all-time low prices. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically,...
Sad Siri Feature

Apple AI Chief John Giannandrea Retiring After Siri Delays

Monday December 1, 2025 2:16 pm PST by
Apple AI chief John Giannandrea is stepping down from his position and retiring in spring 2026, Apple announced today. Giannandrea will serve as an advisor between now and 2026, with former Microsoft AI researcher Amar Subramanya set to take over as vice president of AI. Subramanya will report to Apple engineering chief Craig Federighi, and will lead Apple Foundation Models, ML research, and ...
studio display purple february

M5 iPad Pro Could Hint at New Studio Display Feature

Sunday November 30, 2025 10:30 am PST by
The updated specs of the M5 iPad Pro may point toward a major new feature for Apple's next-generation Studio Display expected in early 2026. Apple's latest iPad Pro debuted last month and contains one display-related change that stands out: it can now drive external monitors at up to 120Hz with Adaptive Sync. The feature should deliver lower latency, smoother motion, and fewer visual...
New Intel Logo

Apple and Intel Rumored to Partner on Mac Chips Again in a New Way

Friday November 28, 2025 7:33 am PST by
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way. Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027. Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
iphone black friday gold

The Best Black Friday iPhone Deals Still Available

Friday November 28, 2025 6:24 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season. Note: MacRumors is...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
maxresdefault

The MacRumors Show: Apple's Big Plans for iPad Mini 8

Friday November 28, 2025 8:39 am PST by
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8. Subscribe to The MacRumors Show YouTube channel for more videos The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...

Top Rated Comments

lchlch Avatar
121 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
121 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
121 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
121 months ago
In Little Britain style, I hope Apple's response is, "iPhone says, nooo."
Score: 12 Votes (Like | Disagree)
fitshaced Avatar
121 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
121 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)