Can banks gain from DoJ’s push on Apple Pay?

January 15, 2024
1 min read


The U.S. Department of Justice (DoJ) is close to launching an antitrust lawsuit against Apple, targeting its control over payments technology. This comes as Apple faces similar pressure in Europe to open its payment apps to outside developers and is locked in a legal battle with Epic Games. A DoJ lawsuit would scrutinize Apple’s use of text bubbles, integration between Apple Watch and iPhones, and Apple Pay policies. If the lawsuit is successful, it could weaken Apple’s ability to charge fees for payment processing and open up opportunities for rival payment providers.

Key points:

  • The DoJ is investigating Apple and its control over payments technology, with a potential lawsuit focusing on how the company limits access to its devices for other products/services.
  • Similar pressure on Apple in Europe and the ongoing legal battle with Epic Games could further impact Apple’s control over payment processing fees.
  • Apple Pay has a significant user base in the US and globally, and opening up competition could provide opportunities for rival payment providers.
  • Banks could benefit from Apple facing legal challenges, as it could open doors to build their own mobile wallets for smartphones.
  • The DoJ lawsuit, European regulation, and ongoing litigation could threaten Apple’s market dominance and its ability to charge fees for access to its payment technology.

If Apple Pay faces more direct competition, it could impact the company’s revenue from payment processing fees. However, Apple would still have the advantage of a strong user base and a decade-long head start on enrolling consumers to use Apple Pay. Other payment providers would need to provide a superior user experience or financial advantage to challenge Apple or Google’s control over digital checkout. It is also important to consider that not all banks may take advantage of Apple becoming more open, as smaller banks may lack resources to develop their own wallets and a proliferation of alternative wallets could hurt usability.

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