In a stunning move, some of Australia’s biggest banks have accepted Android Pay as their online payment provider.
Late last year, a small Australian startup brought Apple Pay to a small section of the Australian consumer base. But the acceptance of Android Pay by major Australian banks gives Google a major institutional advantage. However, Apple remains in discussion with many Australian banks to also accept Apple Pay in the near future.
Some of the giants in Australia that have accepted Android Pay include Westpac Banking Corp, ANZ Banking Group and Macquarie, some of the biggest names in the business.
Commonwealth Bank of Australia, the biggest bank in the country, already has its own mobile payment system. Having access to Westpac’s services alone will provide Google with a market worth over $2 billion.
Analysts note that the deals between Google and Australian banks may be part of a strategic move to force Apple into a deal. Reports from the end of 2015 showed ongoing discussions between Apple and Australian banks. The parties had difficulty deciding on the fee structure, with Apple asking for a large share.
The deals with Google may force Apple to accept less than they previously wanted in order to have access to multi billion-dollar online payment market.