Millions of Apple Pay customers could be owed money as $2B lawsuit is launched
The tech giant could be forced to tap and go
Even though some will maintain that cash is king, how many of you still carry it around with you? After all, presenting a roll of twenties shoved down your sock to buy the new Nintendo Switch 2 is pretty conspicuous.
Credit and debit cards were once the norm, but largely due to the pandemic and people not wanting to touch anything, the boom in contactless payments is something that we'll likely never come back from.
Better yet, the likes of Google and Apple make it easy to pay directly from your phone, meaning there's no more fiddling around with wallets (physical) ones, as it can all be done through your device.
This can lead to similar problems, because if your phone dies, so does your wallet.
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Still, with some 67 million US consumers expected to be using Apple Pay in 2026, it seems it's as easy as tap...and go.
Why is Apple being sued for $2 billion?
Apple Pay has even evolved to include a digital ID and allow US drivers to have their license on their phone, but apparently, the everyday convenience of the tech giant's virtual payment system might've been covering up some hidden costs.
According to The Guardian, a $2 billion lawsuit could hit Apple hard but lead to customers clawing back some of their missing dollars.
For those questioning how Apple makes money from Apple Pay, it takes a small percentage fee from banks and card issuers for each transaction that's processed. This is typically around 0.15% collected from the likes of Visa and Mastercard in the USA.
The outlet explains how financial campaigner James Daley has launched a class action lawsuit against the American tech company, alleging that it blocked competition and hid feeds that led to UK customers missing out.
This £1.5 billion lawsuit states that Apple Pay has been the only contactless payment option for iPhone users in the UK for the past decade, with Daley claiming this led to 'anti-competitive behaviour' that let Apple get away with charging hidden fees.
Having something of a domino effect, the lawsuit maintains that banks being charged these inflated fees then led to the charges being passed down to customers – whether they own an iPhone or not.
Although this is the first lawsuit to tackle Apple Pay, it's far from the first class action brought against Apple itself.
Still, this landmark case comes in the aftermath of the Competition and Markets Authority and the Payments Systems Regulator putting digital wallet services under the microscope.
What has Apple said?
Expanding on why he brought the action forward, Daley explained (via Consumer Voice): "People will have no idea they’ve been paying more for everyday banking because of the way Apple has operated Apple Pay.
“By shutting out competition and charging hidden fees, Apple has pushed up costs for millions of consumers."
Stating that this doesn't just affect Apple Pay users and those who own an iPhone, Daley reiterated: "Banks have passed these costs on to all customers, meaning everyone is paying the price.
“I’m bringing this claim because consumers have been treated unfairly, and I want to help them get back what they’re owed.”
Apple has defended itself, saying the lawsuit is “misguided and should be dismissed”, later adding: “Apple Pay is a seamless and secure way for users to make contactless payments, and one of many payment options available to consumers. Apple does not charge fees to consumers or merchants for using Apple Pay, and banks see meaningful benefits from offering Apple Pay to their customers – most notably fraud reduction.”
If the case is successful, expect consumers to get a tiny slice of the $2 billon pie, with a potential £26 ($35) payout.