Apple says the banks are just whinging about cost of Apple Pay

afr.com:

Apple says the fees it charges Australian banks for using Apple Pay are not a money making exercise, and should be regarded as good value given the tech giant’s digital wallet reduces fraud rates and improves payment experiences for people who transact on iPhones.

At a parliamentary hearing, Daniel Mulino, who is chairing the house economics committee, raised regulatory concerns about a lack of transparency around the fees – worth more than $110 million a year – and potential changes to them.

But Apple legal vice president Kyle Andeer rejected any suggestion the fees amounted to gouging, and said Apple has not changed its fee structure. “It was set very low at the time, and it remains very low,” he said. He pledged to provide the committee with detail about the fees, subject to an assessment of confidentiality clauses in its contracts.

“This is not something that is a profit generator for Apple,” he said.

Apple said it had no plans to enter lending or savings accounts in Australia, citing a complex regulatory environment. Bloomberg

In a series of questions by committee member Andrew Charlton, probing whether Apple’s intentions for financial services extend beyond payments, Apple declared it had no current plans to provide buy now, pay later loans, similar credit products, or savings accounts in Australia despite offering these in the US market. Local banks are nervous about Apple making moves into their core area of banking products on the back of the popularity of Apple Pay.

But Mr Andeer cited Australia’s “very different” laws and regulations, and said Apple would prefer to learn and assess how the new banking products are received in the US before rolling them out elsewhere. Australia “is not a market we have been