Apple Pay Finally Secures Deal for More Users in Australia

14 November 2016

Apple Pay has finally managed to organise a deal with Cuscal Payments Group which will help the company expand its service to 31 small banks and credit unions in Australia. This rollout will make the service available to over four million customers via partnerships.

If you own an Apple iPhone and would like to find out how you can use Apple Pay then we have a small digest here today for you to learn all you need to know. Find out what organisations will be included in the new deal, plus other useful such as how reward programs are affected.

 

Apple Pay LogoIn May 2016, ANZ was the first of the big four banks to jump on the Apple Pay bandwagon, meaning your ANZ MasterCard credit, ANZ Visa credit and debit and ANZ Amex cards will all work. Now this new deal has been secured 30 smaller organisations have been added to the list, which can be found here. Among the more well known are:

  • Credit Union Australia
  • Bank Australia
  • Beyond Bank Australia
  • QT Mutual Bank
  • Central West Credit Union

 

Apple Pay is accepted in a host of big Australian brands too from David Jones and BigW to Kmart, Myer and Woolworths.

 

How to Use

Apple Pay can be used both in-store and when shopping online. Once the app has been set up on your device it’s a simple case of getting to the checkout on one of your shopping websites, selecting pay via Apple Pay and using your fingerprint to complete the payment. This is very useful for those who don’t want to create an account to pay for an item on a website, Apple Pay allows you to go straight to checkout and pay without creating an account.

If you would like to learn how to set up the system on your Apple iPhone or Apple iWatch, there are two great videos on the Apple website.

If you are worried about your rewards programs then any American Express or ANZ-issued cards will earn your points exactly the same as you have used them in the past, without change.

Apple Pay in action

Industry Friction

The banks have argued to the ACCC that Apple’s refusal to allow access to the iPhone’s hardware is an anti-competitive restriction. However, Apple has responded saying that allowing the banks to form a cartel to dictate terms for a new business model would be equally as negative for the customer environment, hence the reason the service hasn’t been widely adopted yet.

We believe that Apple Pay is good because it will cause the Australian system to alter its merchant-fees market to become more competitive. Currently, we Aussies pay $2.5 billion in merchant fees every year. Australia is also one of the worlds leading users of iPhones, making up 35% of the market compared to 16% elsewhere in the world.

The only barrier to seeing radical change is the limited use of the service due to American Express being the only major merchant that currently supports Apple Pay. However, most retailers are forced to increase surcharges by 2-3% when using Amex, the main reason it remains the black sheep of the Australian market. Quickly compare this to Visa and their 0.42% looks very inviting.

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