Individual negotiations between Apple and card issuers around the world have failed due to Apple's large market share in countries like Australia. A collective negotiation approach would create a more powerful negotiating party and be more fair and efficient. Banks argue that Apple relies on their infrastructure for payments but Apple points to their experiences in Canada and China as examples and their impending rivalry with Google in mobile payments, which are subject to rapid market changes in technology like NFC functionality that could drive innovations. Challenges in negotiations include differences in mobile payment infrastructure, regulations, transaction fees, costs, and income disparities between countries.

3. INDIVIDUAL NEGOTIATION BY CARD ISSUERS FROM AROUND THE
WORLD HAS FAILED.
APPLE HAS 40% SHARE IN THE AUSTRALIAN MARKET
THE CHANCES OF HAVING A POWERFUL PARTY AT THE NEGOTIATING
TABLE INCREASES DUE TO COLLECTIVE NEGOTIATION BEING MUCH
MORE FAIR & EFFICIENT.
APPLES RECENT BARGAINING EXPERIENCE IN CANADA AND CHINA.
BANKS CLAIM THAT APPLE WAS USING THEIR INFRASTRUCTURE.

4.  ENHANCE COMPETITION AMONG BANKS
APPLE’S IMPENDING RIVALRY WITH GOOGLE.
DIGITAL WALLETS AND MOBILE PAYMENTS ARE SUBJECTS
TO MARKET CHANGE.
NFC FUNCTIONALITY WOULD BRING DOWN NEW
INNOVATIONS.

5. LOW MARKET SHARE OF APPLE PRODUCTS
TOUGH COMPETITION.
POOR INFRASTRUCTURE
TRANSACTION FEES IS INVOLVED
DIFFERENT GOVERNMENT NORMS
HIGH COST FACTORS FOR MERCHANT
APPLE’S PRICING DECISION FOR THE SHARP INCOME DISPARITY