Australia overturns Apple cart
17 August 2015 by News DeskA Battle of the Giants has broken out down under as major banks seek to prevent Apple launching financial services in Australia.
US-owned Apple wants to launch its Apple Pay service in Australia and cash-in on the fast-growing online payments market. But the country’s ‘Big Four’ banks are seeking to stop them, fiercely protecting the $2 billion a year they earn from the market via merchant interchange fees.
What started out as a dry corporate move by Apple soon turned into a slug-fest with each side seeking to punch above its’ legal and financial weight. Behind-closed-doors talks have now broken down.
While the banks consult more lawyers, Apple is preparing to throw its’ vast corporate wealth into the fight. It has a market capitalisation of $660bn (US) plus a ready cash pile of $200bn – double the size of Australia’s biggest company, Commonwealth Bank, at ‘only’ $100bn (US).
Now the Australian banks have a second battle on their hands after Apple announced plans to launch on the Australian bond market.
Industry observers believe it’s only a matter of time before someone does a deal to break the deadlock, and that the NAB is close to striking a deal with Apple Pay, allowing the US-owned company to target iPhone users and enter the mobile and online payments market.