ANZ becomes first Australian bank to sign up for Apple Pay

Credit: Mighty Travels

Australia and New Zealand Banking Group (ASX: ANZ) is the first of the big four Australian banks to sign up for Apply Pay.

That means that ANZ customers will be able to register their credit card and debit cards in Apple’s digital wallet on their Apple devices and use that device to pay for products and services at contactless terminals.

ANZ, Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) have already agreed to support Google’s Android Pay on Android devices with near-field chips (NFC).

CBA and NAB already have the functionality in their Android apps to allow users to pay with their smartphones, while Westpac’s current app only supports several versions of Samsung’s Galaxy smartphone.

Australia already has a high proportion of consumers already using contactless methods of paying for goods and services – with an estimated 60% of all card transactions now contactless. Compared to other countries, including the US and the UK, that’s very high. Figures from the UK card association showed that just 2% of total spending was done using contactless technology in January 2016 – but it’s more than 3 times the 0.6% in January 2015. In the US, an estimated 18% of households now use mobile payments.

The biggest concern of the banks is that Apple wants a share of their transaction fees. Each time a user swipes their credit or debit card and now their smartphone over a terminal, the merchant pays a fee to their bank. Apple will now take a tiny slice of that, but it’s an extremely valuable slice. Apple’s CEO Tim Cook noted that Apple Pay was growing at a tremendous rate, with 5 times more transaction value than last year and one million users signing on each week.

Foolish takeaway

No doubt the rest of the banks are likely to follow and sign up for Apple Pay, given they have already given their support to Android Pay. Not doing so could give ANZ an advantage given the number of Apple iPhone and Apple Watch users in Australia.

Could these just released franked dividend picks turn $15,000 into over $30,000?

When renowned dividend investing pros like Andrew Page issue buy alerts, it pays to listen. Because investors who followed Andrew's recommendation of Australian Pharmaceuticals in early 2015 could've doubled their money in just over a year, turning $15,000 into over $30,000 by the time he recommended they sell and lock in their profits. Chances are you won't want to miss uncovering the names of Andrew's newest share recommendation and short list of 3 dividend Best Buys Now Shares.

So click here to learn more about these potentially life-changing shares.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.