Macquarie Group and ING Direct plan to start using Apple Pay in Australia this month, “hoping to snatch market share from the major retail banks through digital technology,” reports Reuters.
So far only one of the major banks, Australia and New Zealand Banking Group, has adopted the Apple Pay system, creating an opportunity for smaller rivals in a market dominated by the “Big Four” lenders. Those banks, including the top lender, National Australia Bank, have lodged a joint application with anti-trust regulators seeking approval to collectively negotiate with Apple to install their own electronic payments applications on iPhones.
Apple, which operates its Apple Pay mobile payment service, doesn’t allow third-party electronic payment apps to be installed on the smartphone. The banks are seeking to be able to negotiate jointly for access to Apple’s phones without themselves being accused of violating anti-competition law.
“In the context of the Big Four, it feels like the sector is ripe for disruption,” Dominic Walsh, a managing director of branding firm Landor Associates, told Reuters. “If you are a competitor like an ING or one of these other challenger entrants you need to provide a product that is superior.”
Macquarie Group is a global investment banking and diversified financial services group, providing banking, financial advisory and investment and funds management services to institutional, corporate and retail clients and counterparties around the world. Headquartered in Sydney, Macquarie is the largest Australian investment bank and the top ranked mergers and acquisitions advisor in Australia.
ING Direct is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, asset management, and insurance services. It has institutional clients in more than 40 countries, including Australia.
Apple Pay is currently available in 13 countries: Australia, Canada, China, France, Hong Kong, Japan, New Zealand, Russia, Singapore, Spain, Switzerland, the UK and USA. Apple Pay works with iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus and Apple Watch. When paying within apps, Apple Pay is compatible with the iPhone 6s, iPhone 6s Plus, iPhone 6, iPhone 6 Plus, iPad Air 2, iPad mini 3, iPad mini 4 and iPad Pro. It also works in macOS Sierra.
