NSW transport authorities have made a deal with Apple to allow new payment options. 

The deal introduces a new feature that allows iPhone and Apple Watch users to tap onto the Opal public transit ticketing system without unlocking their devices. 

The feature, called ‘Express Mode’, enables commuters to simply place their phone or watch near the ticket gate or card reader, eliminating the need to activate a card through Face ID or fingerprint authentication.

While the deal enhances convenience for millions of Apple users, it also raises concerns over sovereignty, security, and the cost of infrastructure. 

Australian banks, in particular, have been critical of the growing influence of global card giants like Mastercard, Visa, and American Express, as they generate substantial revenue from payment card interchange fees.

Apple's entry into the payments market has disrupted this oligopolistic system, providing a fraud-proof and biometrically secure alternative.

Apple's increasing involvement in public digital infrastructure is evident through its recent announcements coinciding with the World Wide Developers Conference. 

The impact of these developments extends beyond gadget and brand-focused media, as they shape regulatory discussions surrounding the market power of digital platforms. 

Australia has become a test bed for addressing the dominance of FAANG and MAMAA tech players, including Facebook, Amazon, Apple, Netflix, Google (Meta), Microsoft, and Alphabet.

The Opal ticketing system, developed under a consortium including CUBIC, Commonwealth Bank, Downer, and Parkeon, was based on London's Oyster system, allowing the use of internationally interoperable payment cards. 

However, domestic payments card capability, including eftpos, has been excluded, benefiting Mastercard and Visa at the expense of local players. 

Apple's exclusion of eftpos functionality in its Express Mode for Opal highlights the exertion of market power by various stakeholders, necessitating further policy deliberations across state and federal jurisdictions.

Apple charges banks similar rates as other software vendors, utilising its global platform and eating into card transaction fees. 

The challenge for governments lies in balancing existing agreements with banks and advocating for local payments providers to gain access to transit ecosystems, where global card schemes currently dominate.