CBA has change of heart on Apple Pay
Commonwealth Bank has given in to customer demands to offer the Apple Pay mobile service.
Commonwealth Bank has become the second major Australian bank to allow its customers access to Apple Pay, buckling to feedback that suggested strong demand for it.
CBA joins ANZ in opening the door to Apple Pay, which has 5,200 banking partners worldwide.
CBA’s head of Retail Banking Services Angus Sullivan said after writing to customers this year to request information on what the bank should do differently CBA “heard repeatedly” that Apple Pay was a service customers wanted.
“We are committed to making changes that benefit our customers and simplify our business,” he said.
“We will continue to look for more opportunities to innovate and listen, to ensure our customers get the best experience when they bank with us.”
The major banks – bar ANZ – have been reluctant to cede to the technology giants encroaching on their turf in payments. But the tech companies now appear to be making headway, particularly after signing up the nation’s largest retail bank.
National Australia Bank last month inked an agreement with Chinese payments powerhouse Alipay, making the service available to its business customers early next year.
The Chinese company also has a Memorandum of Understanding (MOU) with CBA, signed in 2016, to explore the integration of the payments system on the bank’s Albert EFTPOS terminal.
CBA’s decision on Apple Pay allows CBA and Bankwest customers to use the service with their personal debit and credit cards and will start in January.
Apple’s vice president of Internet Services Jennifer Bailey said: “Apple Pay is the number one mobile contactless payment service worldwide and we are thrilled to welcome Commonwealth Bank customers, offering them a convenient and secure way to pay using the Apple devices they love or within their favourite apps or on the web.”
CBA has conducted major testing of the system but was unable to go live with Apple Pay prior to the Christmas shopping rush.
It has, however, offered payments on Android devices since late 2017.
That came after the bank teamed with Google to offer Android Pay and also enabled payments “on the go” with Garmin smartwatches in the final quarter of last year.
For customers with iOS devices, CBA has allowed contactless payments via an optional sticker for more than four years on smaller purchases.
Security is likely to be a top priority for users of the Apple payments system.
Amid heightened concerns around security and privacy, Apple Pay provides a unique device account that means numbers are not stored on the device or Apple servers. The unique account is encrypted and stored in what Apple calls the “secure element” of the mobile phone, and each transaction is authorised with a one-time security code.
In retail stores, Apple Pay works with a range of iPhones and will later be available via the Apple Watch.
The move by CBA shifts the focus to Westpac and NAB and whether they will follow suit on Apple Pay.
Last month, NAB’s executive general manager of Deposit and Transaction Services, Shane Conway said the bank had no immediate plans to offer Apple Pay to customers, although he continually monitored payments offerings.
“We are constantly assessing opportunities and understand the payment landscape is evolving very rapidly,” he said.
Australian websites that support Apple Pay include JB Hi-Fi, Red Bubble and Pandora Jewellery. It can also be used for trains in NSW and plans are underway to expand that to buses in the state by mid next year.
Barrenjoey’s five-year growth plan after push into Hong Kong
Barrenjoey’s head of equities says the investment bank is ‘pleased but not satisfied’ with its overall growth trajectory, as he outlined plans to accelerate expansion of the business.
ABA chief Anna Bligh to retire
Former Queensland premier Anna Bligh will step down from running Australia’s peak banking body after nearly eight years, saying the industry has restored trust in the wake of scandals.