Australian banks are renewing calls for cheaper alternatives to Apple Pay, arguing that Apple’s fees remain too high despite recent changes to iPhone payment access. At the center of the debate is Apple and its control over near-field communication (NFC) payments on the iPhone.
The Commonwealth Bank of Australia (CBA) has urged the federal government to intervene. Bank leaders want regulators to ensure Apple offers what they call “reasonable” terms for rivals that wish to use Apple’s NFC technology.
Apple Opens NFC, but Fees Remain
In 2024, Apple opened iPhone NFC access in Australia after similar changes in the European Union. This move allowed banks and third-party providers to develop Apple Pay–style payment systems. However, Apple still requires approval and charges fees for access.
According to estimates cited by Banking Day, Apple Pay fees range between four and six cents on a A$100 transaction. While this may seem small, banks say the cost adds up across millions of payments each day. As a result, they argue that Apple’s pricing limits true competition.
Regulators Gain More Oversight
The debate has intensified because Australia’s regulators now have expanded authority. The Reserve Bank of Australia has gained stronger oversight powers over digital wallets and payment platforms.
CBA has raised its concerns with a parliamentary economics committee. The committee is currently investigating whether Australia’s payment systems are fair and accessible. Importantly, it plans to hold a public hearing in late February, where Apple representatives are expected to appear.
Why Apple Pay Became So Popular
Apple Pay launched in Australia in 2015, although it initially supported only American Express. By 2020, all major Australian banks had adopted it. Usage grew quickly, partly due to Apple’s simple design and strong security.
Even before full bank support, Apple Pay became the most widely used non-bank contactless payment system. That popularity has made it harder for banks to challenge Apple’s position, despite concerns over fees.
What This Means for Consumers
For everyday users, the debate could shape how mobile payments evolve. If regulators push Apple to lower fees, banks may introduce cheaper or more flexible alternatives. On the other hand, Apple argues that its system delivers security and convenience that justify its costs.
For now, Apple Pay remains dominant. However, with regulators watching closely, Australia’s mobile payment landscape may soon become more competitive.
