Tug of War: Apple Pay versus The Big Australian Banks

The ACCC faces a critical decision on whether to allow collective bank bargaining against Apple's closed NFC ecosystem.

Chris Blyth · Venture Insights1 September 2016Period: September 20168 min read

Last updated 10 June 2026

$2.5b→

Estimated annual Australian bank interchange fees

35.2%↑

Apple iOS market share in Australia (July 2016)

Locked

+1more stats

Companies covered:AppleANZNational Australia BankCommonwealth Bank of AustraliaWestpacBendigo and Adelaide BankSamsungGoogleOptusTelstra

Abstract

This report analyses the competitive standoff between Apple and Australia's major banks following the November 2015 launch of Apple Pay. With $2.5b in annual interchange fees at stake, three of the top four banks have applied to the ACCC for permission to collectively boycott and negotiate with Apple to gain access to the iPhone's NFC chip. The analysis explores the implications for consumer choice, innovation, and the potential for Apple to bypass traditional banking structures entirely.

Key Takeaways

Apple Pay is targeting a share of Australia's $2.5b annual bank interchange fee pool.
Three of the 'Big Four' banks (CBA, NAB, Westpac) have applied to the ACCC to collectively boycott Apple to force NFC access.
Apple's iOS holds a 35.2% market share in Australia, significantly higher than its 16% global average, increasing its leverage.

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Frequently Asked Questions

The banks are defending a $2.5 billion annual interchange fee pool that Apple Pay seeks to disrupt. Three of the four major banks, representing a combined market capitalization of $300 billion, have applied to the ACCC to collectively boycott Apple to force access to the iPhone's NFC chip.

Banks that hold out face immediate competitive pressure from early adopters like ANZ, which saw annualized digital sales growth hit 60% after launching the service. With Apple maintaining a 35.2% market share in Australia, non-participating banks risk significant customer churn to rivals offering integrated mobile payments.

Australia is a critical market where iOS holds 35.2% of the mobile landscape, compared to 60.2% for Android. The rapid scaling of the ecosystem to 200,000 supporting websites at launch demonstrates Apple's intent to bypass traditional banking structures and capture high-margin financial transactions.

Tug of War: Apple Pay versus The Big Australian Banks

Abstract

Key Takeaways

Frequently Asked Questions

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