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In brief
- A parliamentary inquiry will be held on Tuesday and Wednesday to hear practices of credit card companies and digital payment systems
- Banks and fintech lobby groups have long complained that Apple exclusively control the mobile payment market on its iOS system.
The heat is once again on the government to tackle what some critics call Apple’s ‘monopoly’ over digital payments on iPhones. This issue takes center stage as a parliamentary inquiry into Australia’s payment ecosystem unfolds this Tuesday and Wednesday.
The shift from cash and physical cards to digital payment methods has been remarkable. According to a report by the Australian Banking Association published in July last year, Australians made over four billion mobile wallet transactions in 2024, a figure that starkly contrasts with the dwindling number of ATM cash withdrawals.
For a while now, banks and financial services have been vocal about the uneven playing field. They argue that they endure more rigorous regulatory oversight compared to international tech giants like Apple.
This inquiry, which was announced last December, aims to scrutinize the practices of credit card companies and digital wallet systems in Australia. It will also delve into the interchange fees levied by credit cards and examine the Buy Now Pay Later initiatives.
In its submission, the Australian Finance Industry Association (AFIA) has criticized Apple’s role as a gatekeeper for contactless payments. They contend that Apple’s policies have hindered Australian banks, fintechs, and other payment providers from launching fully functional digital wallet services on the iOS platform.
Last September, parliament passed the amendment to Australia’s payment system law, expanding the Reserve Bank’s power to regulate digital wallets launched by the tech platforms.
However, the AFIA argued the amendment didn’t address the ongoing barrier for banks and fintechs to fully launch their digital wallet services on Apple, as the Silicon Valley giant still owns the exclusive access to iPhone’s Near Field Communication chip, which is the key infrastructure for mobile wallets.
“If left unchanged, it is likely to entrench monopoly-like market positions that demonstrate very little value to Australians,” the AFIA said in its submission.
Simon Birmingham, chief executive at the Australian Banking Association, also accused big tech platforms of enjoying the benefits of banks’ investment in payment infrastructure, without paying for it.
“Australian banks and other domestic players have done the heavy lifting to fund and build some of the safest and most advanced payments infrastructure in the world,” he said in the submission.
“It’s critical we preserve the ability of domestic players to continue to invest in our payments system — or we risk enabling an inevitable offshoring of these capabilities.”
In its previous submissions to a 2023 inquiry on digital payment systems, Apple said it “does not itself provide financial or payment services in Australia.”
“In its simplest form, Apple Wallet is a digital reproduction of a physical wallet – and no more a ‘payment system’ or ‘participant’ than an actual physical wallet would be – however made more efficient, seamless and secure,” the company argued.
In its opening statement on Tuesday, the Reserve Bank said it will conduct a consultation in mid-2026 to discuss issues that should be prioritised when it executes its expanded power in regulating the payment ecosystem.
“The committee’s inquiry is a timely opportunity to consider the role that these entities, and domestic and international card schemes, play in the Australian payments system,” Reserve Bank’s Head of Payments Policy Ellis Connolly said.
Alongside banking and financial representatives, Apple, credit card giants Visa, Mastercard and American Express are also set to appear at the inquiry.
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