PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Apple Pay Struggles in Australia as Banks Profit From a Fee-Phobic Market

Sarah Grotta by Sarah Grotta
April 13, 2016
in Analysts Coverage
0

sapphire blue background with marbled texture

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

In comparison to global statistics, Australia has a very high use of Apple phones, but Apple Pay is struggling to gain customers. As reported in ComputerWeekly, only Amex cardholders can use Apple Pay. Unfortunately for those customers, Amex is not widely accepted:

“…in Australia Amex remains the black sheep of the retail market, largely because high merchant fees drive many retailers to add 2%-3% surcharges for Amex purchases. Many others simply don’t accept the cards at all.”

Not surprisingly, the lack of banks’ embrace of Apple Pay has to do with money. The regulated interchange caps forced on MasterCard and Visa transactions, plus the belief that Apple is looking for a transaction based revenue share similar to what they enjoy in the US has stifled adoption:

Card issuers have little room to move given the Reserve Bank of Australia-enforced caps on MasterCard and Visa charges, and $A0.12 per debit-card transaction (these do not apply to Amex and Diners Club, which operate in Australia under different structures). These limits might push Australian retailers to pass on merchant fees to their customers, which would be a disincentive to the scheme’s widespread adoption.

This could lead to more bank-based, payment applications for the mobile – focused Australian market.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: