"Unfortunately, and based on their limited understanding of the offering, the [banks] perceive Apple Pay as a competitive threat. These banks want to maintain complete control over their customers. The present application is only the latest tactic employed by these competing banks to blunt Apple's entry into the Australian market," said Apple in a document signed by Marg Demmer, a former cards executive at ANZ Banking Group.

ANZ is not a party to the ACCC application after breaking ranks with the other major banks in April in a deal that allows its cards to be loaded on to Apple Pay. It is understood that ANZ agreed to give up some of its interchange fee to Apple, but the terms of the deal have not been disclosed. The other big banks are understood to be reluctant to give up to Apple millions of dollars which they earn in interchange fees from merchants each year.

Apple said the banks want to force Apple to accept their terms, including allowing them to charge consumers that choose to use Apple Pay. It said it had "struggled" to negotiate agreements with the other Australian banks, although it is currently in negotiations with some Australian institutions.

It told the ACCC that the banks had relied on "innuendo and misstatements" in their submission and "if granted, the request would harm consumers, lead to less competition and less innovation, and create a troubling precedent."

Apple pointed to the market power in cards and payments of the incumbent banks and said "given their scale and market share, the applicants are essential to Apple's ability to offer Apple Pay on a meaningful basis within Australia".

However, it said one of the banks that has brought the application has refused to even enter into a confidentiality agreement with Apple to allow for preliminary discussions about the terms under which it would participate in Apple Pay.

Apple said if the ACCC were to allow the banks to engage in a collective boycott during the term of negotiations with Apple this would slow innovation and prevent customer choice. It said the ACCC should not provide any interim authorisation this month, and instead should take the six-month statutory period to assess the application properly.

About 3000 banks around the world now offer Apple Pay to their customers.