Android Pay Wins Over Australian Banks

Android Pay Wins Over Australian BanksGoogle’s Android has come to terms with a few major Australian banks in negotiating the launch of its mPayment service in the country, according to a new Reuters report.

While the company had indicated earlier this week that Android Pay would make its Australia debut in the first half of 2016, it’s now becoming clear that it has successfully negotiated a deal with ANZ Banking Group, Macquarie, and Westpac Banking Corp. Google has also announced that major restaurant chains McDonald’s and Domino’s have also promised support in the country when the service goes live.

The development could weaken Apple’s negotiating position as it continues to lock horns with Australia’s major banks of Apple Pay’s fees. The banks’ own fees per transaction face lower caps than they do in America, but Apple is nevertheless asking for the same 0.15 percent take that it gets in the US, which has prompted Australia’s banks to balk. Meanwhile, Reuters reports that Android Pay doesn’t charge any such fees.

Android will still be keen to get the other major Australian banks on board, and that may account for the vague timeline of its impending launch. But in any case, it appears to have gained the upper hand against Apple in this corner of the world, and its rival may soon be forced to make some concessions to the banks in order to keep pace.

Source: Reuters