Commonwealth Bank chief executive Matt Comyn:“The thought that a single provider could have 80 per cent market share in an individual market is usually cause for concern.”Credit:Alex Ellinghausen
The chief of the country’s largest bank also said Apple paid “very minimal” corporate taxes in Australia,and said it made no contribution to the cost of sustaining payments infrastructure.
Digital wallets,which allow consumers to make tap-and-go purchases,have surged in popularity during COVID-19,and CBA believes they will become the most popular form of contactless payment by the end of this year.
Mr Comyn said the restrictions that Apple placed on the iPhone’s technology,in contrast to Google’s more open approach,were stifling competition because they stopped banks and fintechs from developing their own iPhone digital wallets.
“The thought that a single provider could have 80 per cent market share in an individual market is usually cause for concern. I’d be the first to say they make fantastic products,but this is a company that’s market cap is double Australia’s gross domestic product,” Mr Comyn said.
“They make great products,they’re an enormous company,they have tremendous market power,and they use it.”
Apple is both a partner and a competitor for banks. The lenders,several of which had an unsuccessful battle with the tech giant last decade,pay Apple an undisclosed fee in return for being able to provide its payment service Apple Pay. Mr Comyn said providing Apple Pay was now seen as “largely essential” for banks.
Specifically,Mr Comyn took aim at Apple’s policy of restricting third parties’ access to the near-field communication (NFC) chip on the iPhone,which allows tap-and-go payments through a handset. To access the chip,banks must send payments via Apple Pay. Google does not have such restrictions,and nor does it charge banks for its payment service.