Myke Hurley talking about Apple opening the NFC chip to other payment apps on the iPhone during today’s episode of Upgrade:

I will be intrigued to see what actually this looks like when it launches. And I desperately hope it does not mean we're going to start seeing banks pulling out of Apple Pay because they want you to use theirs instead. That is what I worry about in seeing this. Every bank is going to be like, "Great, now we're just going to do this."

I certainly don’t know the future, but I can guess based on my view from inside the payments space. If there is one thing you should know about the incentives behind banks, it is that their top interest in this area is to get you to use their card to process the most transactions for the highest amounts possible.

If Wells Fargo is your card issuer, then they want you using that Wells Fargo Visa card as often as humanly possible to buy everything in your life. Whether you do that in their wallet, through Apple Pay, or through something else, it’s not a huge deal to them. Sure, they earn a slightly higher amount on transactions not run through Apple Pay since there is one less player in the mix taking their cut of that transaction, but the odds of them making up that difference by cutting off Apple Pay simply doesn’t seem reasonable to me.

Now maybe they will do something where you can get more rewards if you use their card from their wallet app, which is literally what Apple does with their Apple-issued Mastercard, and then consumers will have to decide if they want more rewards or if they’d rather keep using Apple Wallet. And as Jason Snell mentions right after this clip, the fees Apple is adding to apps using this entitlement likely wipes out most if not all of the difference they would have gotten by removing Apple as a middleman…because Apple would still be a middleman.

Again, I can’t see the future, and I don’t work directly in card issuance, but this is my very strong instinct. They want to win the payment volume game, and you don’t do that by restricting where your card can be used, you win that by being able to tell your customers, “you can use our card ANYWHERE!”