Collectively, the four account for 80 percent of all credit cards that consumers have linked to mobile payment systems, in a country with a relatively high rate of contactless payment. The partnership also coincides with Apple's first-ever drop in iPhone sales during a quarter in which services such as apps, music and payment emerged as the firm's second-largest business. "Our customers ... are much closer to being able to leave their wallets at home," Jennifer Bailey, vice president of Apple Pay, said in an interview. Apple has partnered with a bank widely seen as trailing its three bigger peers in digital technology, a situation ANZ's new Chief Executive Shayne Elliott has set out to change with Apple Pay, as well as by hiring Google's Australia managing director.
"It would be pretty hypocritical of me to ... do all this hoo-ha about digital banking and then not be at the forefront of change," Elliott said in an interview. Digital technology such as Apple Pay is making inroads in the financial industry, prompting traditional banks such as Commonwealth Bank of Australia, Westpac, National Australia Bank Ltd and Australia and New Zealand Banking Group Ltd (ANZ) to beef up digital services. Over a quarter of banking revenue, or about A$27 billion (£14.04 billion), is at risk from "digital disruptors", consultancy KPMG recently estimated. Apple has introduced Apple Pay to countries such as the United States and Britain where banks were also reluctant to sign up. It has since launched in China in February and in Singapore last week. Apple continues to speak with other Australian banks, Bailey said, hoping ANZ customers' experience will create demand among competitors.
Writer - Liam McClelland | @Liamicy