Apple to expand payments service in Australia
Apple is set to bring its Apple Pay service to Australia via 31 of the country's smaller banks and credit unions, including Bank Australia, Unibank, Central West Credit Union and Beyond Bank Australia, according to reports. The deal will see back-end connection services supplied by payments solutions firm Cuscal. Australia's biggest financial institutions, Bank of Australia, National Australia Bank and Westpac Banking Corp, along with Bendigo and Adelaide Bank are currently blocking the use of Apple Pay over third-party access rights and consumer charges.
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As Australia's largest banks look to stymie Apple Pay's expansion efforts for their own gains, Apple and payments solutions firm Cuscal on Wednesday local time announced a deal that will bring the fledgling payment service to 31 credit unions and regional banks.

According to Cuscal managing director Craig Kennedy, the new partnership could deliver Apple Pay to more than four million customers if each of Cuscal's client financial institutions opt to participate, news.com.au reports.

Under the terms of the agreement, Cuscal provides backend connection services between the banks, cardholders and Apple Pay systems.

With Cuscal's help, Apple Pay is rolling out soon at the following banks:

Bank Australia

Bank of Sydney

Beyond Bank Australia

Big Sky Building Society Australian Unity



CAPE Credit Union

Central West Credit Union

Illawarra Credit Union

Catalyst Money

Community First Credit Union

Northern Beaches Credit Union

Credit Union Australia (CUA)

Credit Union SA

Defence Bank

EECU

First Option Credit Union

Goldfields Money

Goulburn Murray Credit Union Co-Op

Holiday Coast Credit Union

Horizon Credit Union

Intech Credit Union

Laboratories Credit Union

My State Bank

The Rock

Northern Inland Credit Union

People's Choice Credit Union

Police Bank

Customs Bank

QT Mutual Bank

Select Encompass Credit Union

South West Slopes Credit Union

Sydney Credit Union

Teachers Mutual Bank

UniBank

The Mac (Macarthur Credit Union)

Warwick Credit Union

Woolworths Employees' Credit Union

Apple is currently at loggerheads with Australia's largest banking institutions over a wide Apple Pay rollout. In July, the Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp, along with Bendigo and Adelaide Bank, lodged an application to collectively negotiate for third-party access to Apple Pay NFC technology, as well as contingencies including the ability to charge consumers fees for using the service and a narrow set of security guidelines. The banks are threatening to boycott Apple's service until their request is honored.

In a response furnished to the Australian Competition and Consumer Commission in August, Apple said the banks' actions only serve to hinder mobile wallet adoption. The company maintains Australia's banking "cartel" aims to stall consumer adoption of Apple Pay and other mobile wallet solutions to stifle competition as it prepares its own proprietary offerings.

For its part, the Apple Pay holdouts say Australians have been moving to contactless payments systems long before Apple entered the sector, a spokesman for the banks told AppleInsider. Specifically, the banks claim they, along with Australia's merchants and payments processors, were integral in the rollout of touchless solutions.

As for today's expansion, Apple VP of Apple Pay Jennifer Bailey lauded the Cuscal partnership.

"We want as many Australians as possible to be able to use Apple Pay," Bailey said. "Today more than 3,500 banks across 12 countries already support Apple Pay and we think Cuscal's customers will really love using Apple Pay for everyday purchases in stores, apps and on the web."