Author: JT

A group of banks in Australia have accused the iPhone maker of delaying the progress of mobile payments.

A number of Australian banks have come together in a claim that Apple NFC technology restrictions are keeping mobile payments from progressing. They feel that mobile wallet services could be advancing faster across multiple platforms, but the iPhone maker’s tech restrictions are proving to be highly problematic.

The banks have said they feel that lifting the NFC restriction considerably change the ecosystem.

The group of Australian banks described the struggle they feel with the Apple NFC technology restriction in a submission to the Australian Competition and Consumer Commission(ACCC). The submission was 27 pages long and described the way the NFC restriction is not only stopping new mobile wallets from being accessible across different platforms, but it is also placing a barrier in the way of progress.

The four banks insist that the restriction is leading to a fragmented customer experience and that if access is not made available there “simply will not be the same incentives and ability to innovative,” when it comes to progress on iOS based devices or others, for that matter.

The restriction from Apple NFC technology is important in Australia as it represents 40% of smartphones.

In the report from the banks, they pointed out that “approximately 40% of smartphone sales are iPhones,” in the country. That said, they also underscored that “the value and importance of the iPhone customer segment for app uptake, use and expenditure far outweigh this share.”

To illustrate the point, the report said that about 60 percent of mobile banking transactions come from iPhone users. Moreover 70 percent of Australian mobile app revenues come from those same devices. As Apple smartphone users are more likely to use mobile wallets and banking and will more readily embrace newer technologies, these are also the users most likely to push tech innovation, such as with mobile payments.

By restricting the Apple NFC technology, the banks claim that progress in other areas of mobile payments is being hobbled. iPhone users are typically more tech focused, wealthy, engaged by and attached to their devices. By cutting them off from tech other than that produced by the iPhone maker itself, competition and opportunity from elsewhere is stunted, said the report.

The vast majority of drivers enjoy using their smartphones to complete transatctions at the pump.

Recent data released by the Carrefour fuel station revealed its gas station mobile payments are highly popular. In fact, the company’s report said that 9 out of every 10 drivers approved of this smartphone based service.

Ninety percent of Spanish customers who had used the mobile service called it “very satisfying.”

Since the summer when the gas station mobile payments option became available at Carrefour in Spain, there have been over 10,000 people who have tried it. Among them, nine out of every ten said that the experience was “very satisfying.”

There are currently 125 Carrefour stations throughout the country and that offer the Pass card holder mobile payment option. This started in June 2016 by way of the Mi Carrefour app. In this way, customers could fuel up and could then get back into their vehicles to pay.

The gas station mobile payments service used geolocation to determine the exact position of the driver.

That allowed the app to recognize the fuel station where the customer was located. The mobile app then prompts the driver to select the supplier, product and amount before starting to pump the gas. Once the car has been fueled up, the customer can confirm the details and simply drive away.

Moreover, the app also occasionally provides discount coupons at the time of payment. This not only gave drivers the chance to save money on their next visit, but it encouraged them to come back and use the mobile payments option again.

According to a statement from the retail chain of gas stations, “The new system has already changed the habits of its users.” It went on to add that “More than 10,000 customers have already tried this option to pay for their fuel stops and nine out of 10 have highlighted this as much more comfortable and safe. Along with pricing and discounts, [these are] the main advantages of Carrefour service stations.”

There are a few companies, such as Starbucks, that have very successfully implemented mobile payments as a transaction option. Carrefour has illustrated the way in which it may be done at fuel stations moving forward.