Bankers Complain that Apple Has a Tight Grip on Mobile Payments

Why It Matters

The concentration limits competition, erodes banks’ fee revenue, and may trigger regulatory scrutiny of an oligopolistic payments ecosystem.

Key Takeaways

• Apple Pay holds ~90% of Canadian mobile payments
• Canadian banks abandoned own wallets by 2022
• Market projected $20.48B by 2030
• Banks cite Apple’s dominance as entry barrier
• Regulators may examine oligopolistic payment ecosystem

Pulse Analysis

Canada’s mobile‑payments landscape illustrates how platform control can shape an entire industry. While the sector is poised for rapid expansion—projected to grow fifteen‑fold by 2030—the concentration of transactions within Apple Pay, Google Pay and Samsung Pay leaves little room for alternative providers. This dynamic reflects broader trends where ecosystem owners leverage network effects and developer restrictions to cement market share, often at the expense of traditional financial institutions.

Banks initially attempted to counterbalance the tech giants by launching proprietary wallets on iOS and Android. However, low adoption rates, high development costs, and the overwhelming popularity of the three dominant wallets forced institutions like TD to shutter their apps, citing consumer preference for the larger platforms. The retreat underscores a strategic shift: rather than competing directly, banks are now focusing on integrating with existing wallets or enhancing backend payment infrastructure to retain relevance.

The dominance raises antitrust considerations for regulators. With nearly nine‑in‑ten Canadian consumers using a handful of digital wallets, the market exhibits oligopolistic traits that could stifle innovation and limit pricing power. Policymakers may need to assess whether current competition frameworks adequately address the unique challenges posed by platform‑centric payment ecosystems, ensuring that both consumers and financial firms benefit from a more balanced digital‑payments environment.