Published Date : Dec 11, 2015
The trend of mobile banking is shaping the dynamics of the banking, financial services, and insurance sector around the world. In the past decade, a growing number of traditional banks have introduced their online banking platforms. Furthermore, a large numbers of consumers have shifted to online banking. This has fuelled the global online banking significantly. In many western markets, many prominent banks have reduced their physical bank count due to the growing consumer preference to online banking.
Many private firms have entered in the online banking sector. These firms have entered the banking industry many times in a partnership to penetrate the market better. However, Apple Inc is facing challenges to persuade big banks in Australia to sign up for their Apple Pay mobile payment system, according to people with the knowledge of the matter. Last month, Apple rolled out its service in Australia with support for payment cards that were issued directly by American Express Co. This move from Apple is projected to extend its mobile consumer electronic strength into financial services, with China launch being next in the pipeline.
However, Apple is yet to strike a deal with the four main banks in the country namely National Australia Bank, Westpac, Commonwealth Bank, and ANZ. This has set Apple adrift from its 80 per cent of consumers that are using mobile payment channels linked to other credit cards in a market where Westpac is worth over US$2 bn this year.
According to Foad Fadaghi, the MD of technology research firm called Telstye, banks in Australia feel that they have done great amount of hard work to pool in contactless payments to Australia and Apple is just going to enter the market and eat their lunch. Nevertheless, the iPhone maker has yet declined to comment, citing the policy of the firm.