Wednesday , September 20 2017

The ACCC has ruled in favour of consumers, and thus Android Pay against some of Australia’s largest banks, if only temporarily

Android Pay Australia

You may have noticed that not all of the Australian banks have welcomed Android Pay with open arms. Commonwealth Bank and National Bank have stated that their own apps and services meet consumers needs, having used the CBAs app I can attest that it is half the app Android Pay is for mobile payments. Westpac says that they are working on implementing Android Pay but it feels like a PR delay tactic.

Last month CBA and National Bank in conjunction with Westpac Bank and Bendigo and Adelaide Bank submitted a filing to the Australian Competition and Consumer Commission (ACCC) requesting permission to “engage in limited collective negotiation with providers of third-party mobile wallet services (such as Apple)” and “to enter into a limited form of collective boycott in relation to a third-party mobile wallet provider”.

Breaking that down, the Gang of Banks was seeking permission to collectively join together, with as many other institutions as they could convince to join, and boycott Android Pay, Samsung Pay and Apple Pay, whilst jointly negotiating with the providers their own terms of access to those services. They made the request to the ACCC as this conduct could well be perceived as anti-competitive behaviour; we’d agree that’s how we’re perceiving it.

This week’s judgement is a temporary refusal of that request, whilst the ACCC undertakes consultation with the industry, consumers, and other interested parties. So rather than a complete win, this is more of a stay of execution. It is unlikely any of the applicants will now just start to support 3rd party mobile payment options.

Reading between the lines Android Pay is not the Gang’s primary target. Apple takes a percentage of every transaction on Apple Pay whilst simultaneously denying anyone else access to the NFC system to integrate their own payments solution, this also feels s a little anti-competitive if you ask us, but Apple habitually gets away with that. This seems to be the group’s primary issue, that’s not to say that the Banks would welcome Android Pay and Samsung Pay with open arms if Apple pay didn’t exist.

Even with Google’s current policies, any 3rd party would be worried about the long-term plan. Sure Google isn’t skimming the transaction yet, but what about in 10 years when the mobile payments systems are ubiquitous? In the end services like Android Pay and Samsung Pay provide consumers choice, and if the banks want users to use their services over ones like these then it’s up to them to develop apps that are more compelling that consumers will CHOOSE to use, that’s how these things apparently work.

We will continue to watch the ACCC and see where this all ends.

Where do you stand on the Banks vs the tech industry on mobile payments? Let us know below.

 
Source: ACCC 1, and 2.
Via: Delimiter.

Duncan Jaffrey   Journalist

Duncan has been interested in technology since coding "Mary had a little Lamb" in Basic on his ZX Spectrum. A fan of all things Android, most days you'll find Duncan trawling the web for Android news or quietly editing away on Map Maker.

Join the Ausdroid Conversation

15 Comments on "The ACCC has ruled in favour of consumers, and thus Android Pay against some of Australia’s largest banks, if only temporarily"

avatar
Sort by:   newest | oldest | most voted
Diogo
Valued Guest
Diogo

So they’re arguing that Apple doesn’t allow fair competition but they don’t allow Google or Samsung to join. Go figure

Pabrinex
Valued Guest
Pabrinex

I have been using tap and pay without much problem from nab for a few months, but am very disappointed they are uninterested in android pay. I have been with nab for 20 years, but getting close to moving banks over this … Get your act together NAB and look after your customers, not just your profit margins, as no customers … No profit

Duncan_J
Valued Guest
Duncan_J

I told this to my old bank via twitter, customer support calls and face to face, and every time they just told me that they already had excellent customer options for Android, Perhaps they’ll listen when enough people switch.

Charles Kane
Valued Guest

I have never, not once, been able to pay using the NAB system. I accept that the issue is complex but NAB is making no effort whatsoever in improving things. As usual the banks continuously fail when satisfying consumer needs. Open this up to competition, let Android pay or Samsung pay in.

Duncan_J
Valued Guest
Duncan_J

or switch banks! Show them choice is important, your only choice now is stay with substandard apps or switch.

Me
Valued Guest

The ACCC siding against the banks isn’t necessarily in the best interests of consumers. Part of the reason for the banks’ desire to collectively negotiate is to have greater bargaining power to reduce Apple’s fees – and potentially do the same if Google starts taking a cut too. Less commission to Apple/Google might reduce the need for extra fees from the banks.

Duncan_J
Valued Guest
Duncan_J

True, but the banks don’t care about consumers, they care about their profits, if memory serves correct, in the USA they negotiated a cut of the Banks fees, so in theory no increase to consumers, but you know where that leads long term.

Member

I’d like to see the banks succeed, only to open up NFC on Apple devices. I hate to say it, but without Apple it’s taking way to long for it to go mainstream.
Aside from banking applications it barely gets the attention it needs for such a useful tech.

ZAK
Valued Guest

Your joking right? NFC has been around since the dark ages and no one uses. Apple is making it main stream and now accounting for 3 out of 4 NFC payments. Hate apple all you like but don’t be a turd.

Duncan_J
Valued Guest
Duncan_J

Yep the bleeding edge is often slow, and the best technology doesn’t always prevail. Competing commercial interests will kill in ovation if it threatens profit. Only consumers voting on mass can affect change.
Problem is when you encounter that one terminal that doesn’t accept NFC, on card you shrug and insert the chip, using the phone it’s a different story. I’ve been using NFC mobile payments since CBA launched it, it’s a very hit and miss experience.

Pete Lindley
Valued Guest
Pete Lindley

I changed banks to Commonwealth a few years ago because of their innovation with mobile payments, but it seems as though now I’ll be changing away because of their lack of Android Pay support.

Duncan_J
Valued Guest
Duncan_J

I’ve been a long time CBA customer, but it was obviously this was a one sided relationship, they care more about misnaming profits than consumer choice, lets see if that results in better profits. I’ve moved my credit cards and am just waiting to move everything else over.

Member
Adam J

Tell me you didn’t go to ANZ, Duncan? Four apps to do what could be done in goMoney alone which, by the way, only receives cosmetic changes. Their track record on Android sucks.

Jesus Machine
Valued Guest
Jesus Machine

This is a twist I didn’t see coming … So no Android pay for St George then as they’re owned by Westpac. What a pity.

Duncan_J
Valued Guest
Duncan_J

Vote with your feet and your wallet, even if you just move your credit cards, you don;t have to uproot your entire banking life to take advantage of android pay, with auto pay options it’s so easy to switch providers.

wpDiscuz

Check Also

‘In the wild’ pic of the Huawei Mate 10 leaks

There’s a number of big name handsets still to be announced in the coming weeks, …