At the end of an interview with The Sydney Morning Herald, MasterCard's global chief, Ajay Banga, admitted that if banks don't issue cards, MasterCard's revenue will decline. Understanding his bottom line, we can understand why the other 98% of the article is about Banga downplaying Apple Pay. Banga noted that "If you add value, people will do it. But if all you are doing is saying 'instead of reaching in your pocket and taking out your card, well, now you are going to take out your phone and wave it' – I don't know what you are solving," he said, pointing out habits and cultural norms change much slower than technology.

"Apple is a great brand and so the whole world was talking about Apple Pay for a little while. But the noise has calmed down," adding that "The people who say things like 'digital will replace the physical' don't understand human behaviour."

Banga also acknowledged that the reductions proposed will ultimately crimp revenue if it leads to banks pushing fewer cards or less of the premium, loyalty cards onto customers, which encourage customers to use them. If you want to read more about MasterCard's global chief downplaying Apple Pay, you could read the full article here.

During Apple's Financial Conference Call in January, Apple's CEO Tim Cook noted that Apple pay was off to very fast start with over 750 banks and credit unions already signed on to bring Apple Pay to their customers. And after 3 only months since its launch, Apple Pay makes up more than 2 out 3 dollars spent on purchases using contactless payment across the three major U.S. card networks. With merchants who already use Apple Pay the rates are even higher.

When times change, it's hard for some to accept it. When credit cards were first introduced into the market, there were people adamant that cash would rule over silly plastic forever. I guess some prefer to simply close their eyes to coming changes. Such fear is human nature and that will never change.

On the other hand, MasterCard USA seems to see it differently. In February, Matt Barr, group head, U.S. Emerging Payments MasterCard stated that "We continue to see positive momentum around Apple Pay from our issuing banks, merchants and consumers alike who are taking advantage of this intuitive and secure payment option."

Barr added that "Consumers want to be able to shop where they want, when they want and how they want – and they want to do so with the confidence that their money is safe and secure no matter how they choose to pay. Meanwhile, merchants and issuers are looking to provide their customers the option to use the payment forms that meet this need and Apple Pay delivers on this."

Hmm, perhaps Mr. Barr should give Mr. Banga a call and walk him through the benefits of using Apple Pay, as he still doesn't seem to get it yet. Of course, that's just a suggestion (ha!).  

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