Four Australian banks had approached the company in July 2016 with the hope of gaining access to the NFC chips that are a part of all iPhones and enable users to wirelessly pay for things via Apple Pay.
But Apple is arguing that if the four banks—the Commonwealth Bank of Australia, National Australia Bank, Westpac, and Bendigo and Adelaide Bank—use the NFC chips independently of Apple Pay, it would compromise the phones’ security.
If the banks’ apps were to use iPhones’ wireless payment system, they would get a cut of the fees that Apple charges when consumers use Apple Pay. Apple’s response comes after the banks worked with the ACCC to negotiate with the company collectively.
In its response, Apple said the main motive of the four banks to use the iPhone’s technology is to preserve their credit card businesses.
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