Australia's big banks will have to go it alone in their wrangle with tech giant Apple over the introduction of iPhone payments in this country.

The Australian Competition and Consumer Commission on Friday denied an application by the Commonwealth Bank, Westpac, National Australia Bank, and Bendigo and Adelaide Bank to bargain as a group against Apple and collectively boycott its payment system, Apple Pay.

Apple Pay allows customers to use their phones like tap-and-go bank cards. While ANZ has already done a deal with Apple, the other three banks have been resisting over the commercial arrangements that would underpin such an arrangement.

"The ACCC is not satisfied, on balance, that the likely benefits from the proposed conduct outweigh the likely detriments. We are concerned that the proposed conduct is likely to reduce or distort competition in a number of markets," ACCC chairman Rod Sims said.