Telsyte Warns Aussie Banks: Customers Will Jump Ship for Apple Pay

February 21, 2018         By: Steven Anderson

Recently, a new report known as the Telsyte Smartphone and Wearable Devices Market Study emerged to give Australian banks—and likely a few others outside the country—some distressing news. Apparently Australians are so committed to mobile devices and their use that they will haul stakes and move from one bank to another on the strength of that bank’s mobile offerings.

Basically, the Telsyte study notes that customers with mobile devices want to keep using those mobile devices. If the bank in question can’t, or won’t, accommodate that desire, then customers will jump ship for a bank that will. Whether the customers are focused on Apple Pay, Android Pay, or whatever Pay of choice makes up the customer base, customers expect their bank to back them up.

The numbers make the picture much clearer, and much more potentially disastrous  for a bank that doesn’t take them with due seriousness. One in four iPhone owners at Commonwealth Bank were more likely to bank with a provider that supports Apple Pay. Since Commonwealth Bank refuses to support Apple Pay as of this report, that means a quarter of Commonwealth Bank’s iPhone-owner business could be gone overnight.

The numbers do vary, of course; Android users will only jump ship in 16 percent of cases for smartphone users, and smartwatch users will only do so in six percent of cases. Interestingly, while 22 percent of iPhone users will leave, nearly a third—32 percent—will do likewise in the case of Apple Watch users. Android Wear users, meanwhile, will only do so in six percent of cases.

The whole study, honestly, should give a bank pause. If a bank had an employee who was embezzling the equivalent of six percent of the bank’s Android Wear business, they’d stop at nothing to hunt him down and at the very least fire him. Criminal trials would likely be fired up. But what are those banks doing when faced with the loss of that same amount of business? What are they doing in the face of the much larger numbers from Apple users or Android smartphone users?

Answering those questions could mean the difference between profitability and insolvency, especially down the road. Those who fail to produce satisfactory answers today may find themselves struggling, or worse, later.