Australian banks are paying Apple more than $110 million a year to use Apple Pay, an amount that will further climb alongside the take-up of digital wallets.
Apple is raking in more than $110 million in annual fees from Australian banks, an amount that will further rise as paying with mobile phones becomes more common.
The government is understood to be preparing a response to recommendations made by several payment policy reviews last year, Apple told a parliamentary inquiry on digital wallets last year its fees represent a “tiny fraction” of the estimated $3 billion in payment related costs for Australian financial institutions. It has provided no additional detail on what those fees are.
Apple Pay is costing the banks more than $110 million each year and the amount will rise alongside digital wallet usage.But Apple argued in submissions last year it has invested in Australia, including ensuring Apple Pay recognises direct-debit eftpos cards to maintain price competition between different methods of card payments.
The claim stated whenever an Apple Pay transaction is completed using a US bank’s payment card, the bank must pay Apple a fee of 15 basis points on credit and a flat 0.5 cents on debit transactions.applied them to RBA data on debit and credit card volumes, and then to payments made via smartphones.
Dr Lowe said in his speech to AusPayNet’s event last December the RBA needs more power over emerging global payment platforms. “The payments ecosystem is becoming more complex and there are many more entities in the payments chain than there used to be,” he said. “If the RBA is to meet its broad mandate to promote competition, efficiency and stability then we need to modernise the definitions that were included in the legislation more than two decades ago.
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