After its parent loses clash with regulator, BNZ joins ANZ in offering Apple Pay
Three years after Apple's mobile payment technology was launched in the US, a second bank finally signs on for New Zealand.
Three years after Apple's mobile payment technology was launched in the US, New Zealanders finally have a choice of Apple Pay providers.
BNZ has signed on to support the platform for its Visa customers, joining ANZ, which came on board in October last year (for Visa credit and debit card customers).
The development also means BNZ is the only bank to support both Apple Pay and rival Android Pay.
Both technologies let users make payments via a smartphone or smartwatch, as long as a store has an Eftpos machine that supports Paywave contactless payments.
ANZ broke ranks to support Apple while the other major Australasian banks — Westpac, BNZ parent NAB, and ASB parent CBA — went to the ACCC (the Australian equivalent of New Zealand's Commerce Commission) wanted the regulator to grant them authority to negotiate as a bloc with Apple.
The group of banks objected to:
1. Apple’s contractual stipulation that any bank that adopts Apple Pay cannot pass on Apple’s fees to customers.
2. Apple’s refusal to let third-parties access its near-field communication chip, which in practical terms means banks can’t release their own virtual wallets to compete with Apple Pay, at least not for Apple’s devices.
Apple argued its Apple Pay wallet was the best solution for competition because its virtual wallet can hold credit cards from different banks.
After an extended fight, the ACCC ruled against CBA, NAB and Westpac and March, leaving each to decide if it would suck it up and accept Apple's terms (or, indeed, somehow convince Apple to voluntarily alter them).
A spokeswoman for BNZ says "We won’t be commenting on any aspect of the contract, partnership or financial terms because it’s of a commercially sensitive nature."
Neither has ANZ disclosed terms but US reports say a card issuer must pay Apple 0.15% of a credit card transaction and 0.5c for each debit card transaction).
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After its parent loses clash with regulator, BNZ joins ANZ in offering Apple Pay
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