Although, it is not well-known Apple has currently been striving to become one of the largest mobile payment operators throughout the globe. Their payment gateway just took another step forward, in Australia.
The reason that Apple was victorious is due to the Australian competition regulator denied giving grants to a group of local banks to negotiate over the use of Apple Pay.
In a statement, the regulator authority revealed that in their opinion, a collective negotiation would favor banks at a scale, which is not approved of. The regulator stated, “Could reduce the competition between the banks in the supply of mobile payment services for iPhones.”
How this benefits Apple
Currently, Australian banks were already searching for a way to improve their current position in terms of their talks with Apple of contactless payment cards. However, Apple will be entitled to grab a sizeable share of the payment market
Furthermore, the technology of the application restricts consumers from enabling any other application, besides the payment gateway to make use of the near-field communication antenna, which is used to make payments.
This is not the first time that the country is attempting to create a digital representation of a wallet. With one of the largest transportation systems in the world, a system where consumers can pay with the use of mobile wallets.
Apple’s response to the acceptance of their payment gateway
In accordance with the decision made by ACCC regarding their payment gateway, a spokesman for apple released the following statement, “We believe today’s draft decision is great for Australians and we look forward to continuing work with individual banks in Australia and around the world to bring Apple Pay to their customers.”