ANZ announces an agreement with Google
ANZ has announced that it has signed an agreement with Google for ANZ customers to be able to upload their credit and debit accounts to Android Pay. This will allow customers to use ANZ accounts to make contactless payments for goods and services. The major banks have resisted the pressure from Apple and Google to allow customers to utilise Apple Pay and Android Pay in Australia on the basis that the fee the service providers wanted as a percentage of the transaction value was too high. In Australia, the interchange fee is only 50bpts. Despite this, Apple is pushing for a 15bpt fee on Apple Pay transactions. The 15bpt Apple Pay fee would amount to around A$422 million of the A$2.4 billion of total merchant fee revenue generated by the banks in FY14 if applied to all transactions. This is yet another area of threat to bank returns and profit growth, with pressure on fee income shifting the mix of residual earnings toward more capital intensive and less scalable returns from lending. READ THE FULL ARTICLE HERE: (VIEW LINK)
Roger Montgomery founded Montgomery Investment Management, www.montinvest.com in 2010. Roger has than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book, Value.able.