Apple Is Refusing to Open The NFC Chip from Apple Pay to Australian Banks: The Case of Spain

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Last month, three Australian banks Apple was accused before the country antitrust authorities. Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp was responsible for making the accusation. His goal was to gain access to the NFC chip in the iPhone 6 onwards for use in their own mobile banking solutions.
As we all know, Apple Pay was launched in Australia last November. Since then, it has experienced a very slow progress since the major banks have refused to adopt this system. Financial institutions want to their customers use of mobile payment systems in which you have invested and developed. To do this, come important iPhone NFC chip incorporating their own apps.

The refusal of Apple: a security risk

Australian authorities accused Apple of artificially restricting options in mobile payment methods. The rest of the mobile platforms that incorporate this technology They offer the possibility to use by third parties without any kind of supervision. Thing that Apple has used in his defense.
Apple has sent its response to the Australian Commission of competition, in which he argues the following:
Apple maintains very high security measures to our customers when they use Apple device to make payments. Provide simple access to antenna NFC to banks apps would decrease fundamentally this high security level that Apple seeks to maintain in their devices.
Unfortunately, based on their limited understanding of the system, the banks perceived to Apple Pay as a competitive threat. These banks want to maintain complete control of your clients. This application is just a new tactic employed by these banks to crush Apple to enter the Australian market. Of being granted, the request would harm consumers, leading to less competition and less innovation.
The Californian company added that ‘allow the banks form a cartel that dictate the terms of new services and business models would create a dangerous precedent and it would delay the introduction of potentially disruptive technologies.” With these words, there is no room to doubt that Apple is taking seriously the expansion of Apple Pay around the world.

Apple Pay and his arrival to Spain

Spain is one of the most advanced countries in terms of infrastructure and use of mobile payments. Both cards and banks and point of sale terminals are adapted to the payment contact-less. Therefore, it announced that Spain would enter to join the select club of Apple Pay this year. After months of rumors, Apple left out our country for the next wave that would incorporate the service.
Although this could change in the coming months, the truth is that you it’s a complex story. As in the Australian case, the Spanish banks are not receiving embracing a Apple Pay. They also have developed and invested millions in their own bets from mobile payments and do not want to leave in the hands of third-party relationship with its customers.
It is not a problem of the Commission charged by Apple Pay but the banks strategic
She is not so much a problem of the Commission charged by Apple for the service (0.15% per transaction, a minimum price for increased security and reduction of fraud involved) but strategic. Spanish, like the rest of financial institutions of the World Bank them, they must cope with the uncertainty generated by the mobile payments.
The speed with which technology advances make possible the emergence of new models of business and startups able to “unseat banking”. As added risk, the Spanish banks and have gone through a painful process of restructuring and reduction of branches throughout the country. It is very possible that we see how the integration with Apple Pay stretches more than it should and we should not rule out any intervention of the national competition Commission, as in the Australian case.
The truth is that the expansion of Apple Pay It is being more complicated of which Apple was initially. We will see if there is news on the matter in September.