Banks contradict Apple on security

The nation’s banks have accused Apple of making “completely baseless” assertions about security.

Apple Pay, automated payment from an Apple smartphone.

The nation’s banks have accused Apple of making “completely baseless” claims to try to enforce a lockout of third-party digital-wallet providers from its iPhone platform.

In response to “incorrect and potentially misleading” submissions by their opponents to the competition watchdog, the banks contradicted Apple’s position that allowing third-party access to the platform would compromise security settings.

“Apple’s claim that providing (access) to the near field communication function would undermine security or customer experience is completely baseless,” a statement by the banks said.

“Android, Windows and BlackBerry phones all provide access to their NFC in line with global standards of security for contactless payments set out by the card schemes.

“There is no evidence that Android Pay, Samsung Pay, or any of the mobile payment apps that have been developed for those platforms have affected ­security.”

In August, Apple attacked the Australian banks for seeking clearance from the Australian Competition and Consumer Commission to collectively negotiate with Apple over an access arrangement.

The company said that opening its platform to all-comers would compromise the iPhone’s security, curb innovation and stymie its entry into the payments market.

“Providing simple access to the NFC antenna by banking applications would fundamentally diminish the high level of security Apple aims to have on our devices,” it told the ACCC.

The banks, including Westpac, Commonwealth Bank, NAB and Bendigo and Adelaide Bank, responded to the round of submissions by tabling a 137-page document with the ACCC.

They said they weren’t alone in their concerns, with other jurisdictions around the world also attacking Apple over its determination to keep its platform closed.

Apple, they said, was seeking exclusive use of Australia’s existing NFC terminal infrastructure for integrated mobile payments using iOS devices.

“Yet this infrastructure was built and paid for by Australian banks and merchants for the benefit of all Australians,” the banks said.

“Australia already has a significantly advanced, secure, convenient and world-leading contactless payments environment and the applicants want to make sure these standards are maintained.

“Transparency in fees means that Australian consumers who do not want to use Apple Pay should not be burdened with costs that are imposed by Apple solely for its benefit.”

A spokesman for the banks said the future of mobile payments in Australia was at stake.

“Will it be ‘Apple’s way or no way’, or a genuine level playing field so all consumers can have the best digital services, no matter what device they own,” he said.