What you need to know
- Apple is reportedly in talks with banks and credit companies in Israel.
- It's reported that Apple is aiming to bring Apple Pay to the country.
- Apparently, some of the banks involved were surprised by Apple's high fees.
Apple is reportedly in talks with banks and credit companies in Israel, as it seeks to bring Apple Pay to the country.
"Apple representatives have begun a round of meetings with banks and credit companies to formulate agreements to begin Apple Pay's operations in the country. Factors in the financial system were surprised by Apple's fee, 0.2% of each transaction: Exploiting its power."
The Bank of Israel has determined that as of this coming November, Israeli businesses will be able to use the EMV standard for payment via a mobile device. According to the report, representatives of the Israeli financial system have met with Apple representatives in order to try and reach a deal.
It seems that Apple's high fee, estimated to be between 0.15%-0.25% of each transaction, has come as a surprise to Israeli parties. Those demands would mean Apple takes between a quarter and a third of the card issuers revenue for each transaction.
Credit card activity in Israel is reported to be approaching NIS 350 billion ($101 billion), meaning Apple could potentially receive tens of millions of shekels from any such deal. According to the report, Apple's iPhone holds around 15% of the market share in the country.
One party close to negotiations reportedly said:
"It is disproportionate, and constitutes exploitation of its (Apple's) status and power."
The Bank of Israel is said to be aware of the issue regarding Apple's fee and could intervene if necessary, however, "there is currently no concrete intervention plan."