Banks and Credit Unions Can Team Up to Sue Apple Over Apple Pay Fees

A federal judge has certified a class action against Apple, allowing banks and credit unions that issue cards enabled for Apple Pay to pursue their fee complaint against the company as a single group.

US District Judge Jeffrey White certified the class this week. It covers any US entity that issued a payment card enabled for Apple Pay and paid Apple a fee for Apple Pay transactions made with that card. The judge also denied Apple's motion to exclude expert testimony that the plaintiffs' attorneys say proves the company holds monopoly power in the mobile wallet market.

The fees at issue

The lawsuit was first filed in 2022. It claims Apple illegally collects up to $1 billion a year in fees by preventing rivals from accessing the iPhone's NFC chip to build competing mobile wallets. According to the complaint, a card issuer pays Apple 0.15 percent for credit card transactions and half a cent for debit card transactions made through Apple Pay. On a $1,000 purchase, Apple collects $1.50 from the issuer.

The complaint argues that Apple can charge those fees because Apple Pay is the only tap-to-pay option on the iPhone. It points to Google's Android, which supports multiple wallets and does not collect a fee from card issuers for contactless payments.

What changed at Apple

Apple has changed its policies since the lawsuit was filed. As of iOS 18.1, developers can offer NFC contactless payments inside their own apps. That access covers the United States, Canada, Australia, Brazil, Japan, New Zealand, the UK, the European Economic Area and a number of other countries.

What the plaintiffs want

The plaintiffs are seeking repayment of the fees card issuers have already paid, along with injunctive relief that would, in their words, "put an end to Apple's policies."