Google has announced plans to launch Android Pay in Australia in 2016 and it has already received the support of nine banks there – unlike Apple, which launched Apple Pay last month with the buy-in of only one bank.
Adelaide Bank, ANZ Bank, Bank of Melbourne, Bank of South Australia, Bendigo, Cuscal, ING DIRECT, Macquarie Bank, St. George and Westpac will be the first banks in Australia to offer Visa, MasterCard and EFTPOS on Android Pay when the service is rolled out in the first half of 2016. Meanwhile, Apple Pay is still struggling to convince banks to accept its terms – although it has signed a deal with American Express there.
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The main bone of contention in Apple’s negotiations with main banks in Australia is the fee – Apple is demanding 15 basis points in interchange fees that banks have refused to share, even though banks in the US, Canada and UK have agreed to these terms. Meanwhile, Android Pay has not demanded for such charges.
Australian banks are also strong players in the mobile payments space there, which provides them with further bargaining power with tech players such as Apple and Google.
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