London fintech Curve to launch Apple Pay rival that could save banks ‘millions’
Currently, banks and financial institutions incur significant fees for transactions processed through Apple Pay.
London fintech Curve is on the verge of launching its own version of Apple pay, a move it claims could save banks “millions” currently funnelled to the big tech firm.
Curve’s new service will present a direct competitor to Apple Wallet, enabling iPhone users to make contactless payments by double-clicking the side button. At present, Apple’s system is the only payment option on iPhones.
Curve claims this change will save banks “millions of euros” currently paid to the US giant in transaction fees.
Following a European Commission investigation that started in 2020, Apple has recently granted rivals access to its near-field communication (NFC) chip, which apps like Curve can use for their own contactless payment systems.
A Curve spokesman confirmed that their product would be ready for launch once the final technical details with Apple’s NFC technology are resolved.
Currently, banks and financial institutions incur significant fees for transactions processed through Apple Pay. Curve argues that by using its system, these fees can be avoided, potentially saving banks millions.
“Curve has long argued what the European Commission recently confirmed,” said Curve founder Shachar Bialick, “that Apple Pay has enjoyed market dominance through illegal restriction of competition. This undermines consumer choice and has hamstrung banks with no other option but to pay the piper on every transaction.
“We know payment choice is the most important digital feature to people, and the reduction in banks’ revenues from interchange fees, partly due to the “Apple Tax”, has reduced consumer’s offering, such as rewards.
“Therefore, we are delivering Curve Pay so every payment costs less to the issuers we work with and creates a rewarding experience for customers. The newly competitive market for digital wallets is about to experience genuine customer-first innovation and Curve is at the forefront of facilitating the next wave of opportunities for customers,” Bialick added.
City A.M. has approached Apple for comment.
Founded in 2015, Curve allows users to consolidate their bank and loyalty cards into one app.
With over four million customers and £3.2bn spent via the platform in 2022, the company is aiming to hit profitability this year. It generates income from card transactions, ATM withdrawals, currency exchanges, and a subscription service.
Apple Wallet, available exclusively on iPhones and its other hardware, stores sensitive information, from credit cards to airline tickets.
The US Department of Justice sued Apple for monopolising smartphone markets in March, alleging that it is too difficult for users and developers to leave Apple’s ecosystem. The lawsuit claimed the company’s dominance discourages the creation of alternative digital wallets and stifles innovation.
Apple denied the claims and vowed to “vigorously” fight the lawsuit.
