Apple Pay Releases New Video While Apple Is Being Sued

In contrast to manufacturers of Android-based devices, which allow customers to choose wallets like Google Pay and Samsung Pay, Apple “coerces” clients who use its phones, smartwatches, and other products into using its own wallets for contactless payments. Payment card issuers filed a proposed class action lawsuit against Apple Inc. on Monday, alleging that the iPhone manufacturer used its dominance in the mobile device industry to stifle competition for its Apple Pay mobile wallet.

Affinity Credit Union of Iowa is suing Apple for allegedly engaging in anticompetitive behavior in the way it manages Apple Pay. Similar to a claim made in the EU last year, this might develop into a class action case.

Apple Pay Is Apple’s E-Wallet

The accusation is that Apple “coerces” people who own its smartphones, tablets, and watches to adopt Apple Pay and forbids other payment systems from operating on its platforms. As a result, 4,000 institutions and financial unions in the US now accept Apple Pay, incurring annual excess fees of at least $1 billion.

Apple charges a fixed fee of 0.5 cents for a debit transaction and 0.15 percent for credit transactions. The competing Android services are free. Money is not the only issue. The complaint claims that because there is no competition, Apple has little need to enhance and secure Pay. This implies that both Apple users and the companies who offer credit and debit cards that support Pay are impacted. Triple damages are demanded in the complaint along with an end to Apple’s anticompetitive actions. This will probably necessitate allowing third-party payment firms access to all of Apple hardware’s mobile payment features.