Apple Pay, Apple’s contactless payment service, could land in Israel anytime soon; Apple is in talks to offer Apple Pay in Israeli territory.
Thus, Apple representatives have started a series of meetings with banks and credit companies in Israel in order to find agreements to start with Apple Pay services in the country. Some banking institutions are interested, however, some of them were surprised to find that Apple requires fairly high fees which are estimated at 0.15% – 0.25% of any transaction made via Apple Pay.
This represents between a quarter and a third of the credit card issuer’s income from the transaction (bank or credit card company), which should only be paid for the right to go through Apple Pay. “It is disproportionate and it constitutes an exploitation of its status and its power”said one of the banking institutions that criticize Apple on the matter.
The Bank of Israel, which is working to advance the world of payments in the country, is aware of the problem and will examine it if necessary, although there is currently no concrete intervention plan . Furthermore, Israel is not the first country where the commission snapped up by Apple has disrupted; this was the case with us in France a few years ago.