Block backs CBA in ‘critical’ digital wallet war against Apple
The $52 billion fintech has found common ground with Australia’s largest bank as it looks to ramp up competitive pressure on Apple, Visa and Mastercard.
Global financial tech company Block has joined the Commonwealth Bank in urging Canberra to ramp up competition in digital wallets, as fintechs and big banks join together up to take aim at Apple Pay’s market dominance.
The dual-listed $52 billion technology group has told policymakers that mobile wallets had become a “critical part of the payments ecosystem”, with tap-to-pay transactions in Australia recording 122% year-year growth, according to data from company’s payments subsidiary Square.
“Once that choice is made, card issuers are required to pay non-negotiable wallet fees, with these costs ultimately flowing through to merchants and reducing competition. This matters because mobile payments are growing rapidly,” Block said.
Even as growth continues at breakneck speed, Block argued competition remains constrained in that segment of the payments system “where market power is concentrated and competitive forces are weak”.
