They believe granting Australian banks the right to collectively negotiate with third-party mobile providers such as Apple on conditions relating to competition, best practice standards, and efficiency and transparency.
At the end of July 2016, the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide Bank teamed up to collectively negotiate with Apple to install their own electronic payments applications on iPhones and filled the application with the Australian Competition and Consumer Commission (ACCC).
The main goals the banks want to achieve included ensuring there will be non-exclusive access to a mobile near-field communication (NFC) chip, which would open it up to opportunities for other third parties, such as retailer loyalty programs or transit companies, to access the wallet; standardised security standards across the mobile payment system; and price transparency for payment system transaction costs in Australia, which is in line with the Reserve Bank of Australias policy.
However, the ACCC has decided not to grant Commonwealth Bank, Westpac and NAB interim approval to collectively bargain for Apple Pay use.
The ACCC expects to release a draft decision by October 2016.
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