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Apple Pay Will Help Smaller Lenders Compete in Credit Card Market in Australia

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According to a new report from The Sydney Morning Herald, Apple has predicted that Apple Pay can help unleash a new round of competition for banks on credit cards, as part of its latest argument in its submission against four Australian banks, which want access to the secure element on the iPhone.

The report notes that lenders will be more inclined to offer shoppers more perks for paying using their credit card, including cash-back or frequent flyer points.

According to Apple, lenders in the U.S., Canada, and the U.K. have competed more aggressively for customers by offering them deals to entice people to link their card with Apple Pay–and the same would be for Australia:

“Apple expects that, with a range of payment cards available in [its] wallet [product] in Australia, the same increase in competition is likely to occur in Australia as has been evident in these other jurisdictions.”

Apple has argued that its digital wallet will allow smaller banks and lenders to better compete with the larger banks in the credit card market.

Have you linked your bank’s credit card with Apple Pay on your iPhone? Have you been using Apple Pay on a consistent basis? Let us know in the comments below.

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  • andrez1

    Apple needs to convince banks to remove the $100 limit from Apple Pay transactions. This limit makes sense for tap cards, but not for a fingerprint authenticated transaction. I can never stop carrying the actual cards with me if this is the case – which is ironic, because using the card and signature (or even PIN) is not as secure as Apple Pay.

    The banks are treating Apple Pay as if it’s a tap card, when it is not the same at all, beyond the tapping itself.

    As far as I’m concerned, if I need to carry a card, and watch the total at the checkout in case it goes over $100, I might as well just use the card all the time. Scenario: iPhone ready in hand, prepared to pay. Oops, total is $107.89. Put phone away, get wallet out and pull out a less secure card. Cumbersome, and just plain silly.

    Apple Pay is a fantastic technology – but only if the banks learn to trust it and let it replace having to carry their card in my pocket. Why won’t the banks help move us into the 21st century?

    So, no, I’m not using Apple Pay. The above is why.

  • mrideas

    I use it at every chance I get however the $100 limit most of the Banks have in place I would agree doesn’t make sense. Pretty Amex cards issued by American Express directly don’t have that limitation. One of my cards, possibly Tangerine, doesn’t apply that limit and I’ve made larger purchases. Off the top of my head I forget which one though đŸ˜‰ If I’m using my fingerprint and a registered device it makes no sense that it won’t approve it over $100. I’d use it more with larger purchases anytime if that limitation was eliminated.

  • Zack

    Not sure if this is the same everywhere, but in Australia, “tap” payments over $100 can be completed by entering your pin. Still an extra unnecessary step but better than carrying a card.

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