In a recent article, we took a look at an ongoing battle between Apple and the major banks. The dispute revolves around the the former's Apple Pay technology, which has the ability to turn your iPhone into a digital wallet, working in much the same way as payWave bank cards. It works by asking the user to take a photograph of their cards, then using that data to enable swift, efficient payments.
However, the technology giant has halted certain banks from using the technology, including the Commonwealth Bank, NAB and WestPac. Why? Well, Apple think that by opening the iPhone's antenna to the banks, it would become a free-for-all that would put the security of the user's detail at risks – but that's probably not the case.
The dispute revolves around the the former's Apple Pay technology, which has the ability to turn your iPhone into a digital wallet.
"This is not really about security at the end of the day. This is just the banks not wanting to pay Apple part of their commission," said Dr David Glance, director of the University of Western Australia's Centre for Software Practice.
"I don't know why Australians wouldn't think it was secure. That's exactly what Apple is arguing – that because it's closed and integrated with the operating system, because they have their controls over what runs on the phone, it is actually much more secure than just opening up NFC (the antenna) direct to the banks," Dr Glance continued.
What does CAPE think?
Here at CAPE, we've followed developments in this bitter battle closely. On the one hand, it's easy to see why the banks feel so aggrieved – after all, they helped to build the contactless payment system that works so well in Australia, and now Apple has turned up and wants to piggyback off it – for free. On the other, the banks could be shooting themselves in the foot if they refuse to play ball, which could incur the wrath of thousands of their customers.
CAPE does offer Apple Pay. Our customers need not worry about the security of sensitive data, as Apple have laid several safeguards to keep it locked away. For example, a payment cannot be made without an accompanying thumbprint (which must match) and the details stored on your handset are heavily encrypted. Hence, should some clever hacker break into your iPhone (either physically if you've lost it, or remotely) it will be very difficult for them to steal those vital numbers. Additionally, should your phone get lost, you can disable Apple Pay immediately from a computer – so anyone that tries to use it dishonestly will be out of luck.
Be sure to contact us if you have any queries about our Apple Pay service.
