Australia’s 3 biggest banks want e-wallets installed on iPhones

The National Australia Bank, Commonwealth Bank of Australia and Westpack Banking Corp. have teamed up to convince Apple to allow third-party electronic payment applications to work on iPhones.

While the three big lenders resisted on adopting Apple Pay mobile wallet, they have lodged a joint application with the Australian Competition and Consumer Commission (ACCC) to seek government’s approval to collectively negotiate with Apple on accessing Near Field Communication (NFC) chips on iPhones.

According to Reuters, NAB, CBA and WBC want their respective mobile wallet applications to be installed on iPhones so that clients have electronic payment options other than Apple Pay. Under the electronic payment scheme, iPhone users can pay for goods and services by holding their iPhones over special Apple Pay terminals or other vending machines that accept NFC-powered contactless payments.

Hypocrisy

Australia’s biggest banks may be perceived as trying to challenge Apple’s e-wallet cartel, but the move was described as a hyprocrisy by the founder of fintech Stockspot.

“It’s a beautiful irony for Australia’s banks to complain of the market dominance and control of Apple and Google and demand they open their NFCs, as they have done this week,” Chris Brycki, founder and CEO of Stockspot told Business Insider. “They are forming a cartel to strong arm Apple into opening up everything to them so they move into cardless payments.”

“Australian banks are doing everything in their power to not offer open data APIs, which could allow fintech firms to access customer transaction account data,” he added. “Preventing fintechs and their customers from accessing their own banking data makes it impossible to provide services that rely on assessing creditworthiness, analysing spending patterns or understanding a client’s finances.”

Unlike NAB, CBA and WBC, the Australia and New Zealand Bank has adopted Apple Pay system since April. An ANZ customer with Visa debit or credit card or an ANZ branded American Express credit card can pay electronically using Apple Pay.

So far, Apple Pay has been rolled out in the United States, China, United Kingdom, Canada, Singapore and Australia. Apple plans to expand its electronic payment system to more countries.