Australia's big banks hold hands to challenge Apple on mobile payment apps

Posted on: Jul-2016 | By: 9 Dimen | Business Services

Australia's 3 biggest banks, including number one lender National Australia Bank (NAB), said they had lodged a joint application with anti-trust regulators seeking approval to collectively negotiate with Apple Inc. to install their own electronic payments applications on iPhones.

Apple operates its own Apple Pay mobile wallet and doesn’t allow third-party electronic payment apps to be loaded onto to the hugely popular smart phones. The banks are seeking a joint negotiation for access to Apple's phones.

The move pushes a power struggle between Australia's dominant lenders and Apple on financial technology. The three banks have denied signing deals to use Apple Pay and want iPhone users to be able to install the electronic wallet systems they have already developed and financed themselves.

While Apple’s rival Samsung Electronics Co and Alphabet Inc's Google have developed proprietary payments systems known as Samsung Pay and Android Pay, they accept third-party mobile payment apps.

Apple has rolled out its payments system to six countries so far namely the United States, China, Britain, Canada and Singapore, as well as Australia and planning to expand more.

Some banks in countries beyond Australia have been reluctant to accept the system, though in recent months Apple has added four banks in Singapore to its sole partner there, American Express, as well as Canada's five big banks.