National Australia Bank (NAB) has entered a 10-year exclusive agreement with Visa that ends the banks previous arrangements with MasterCard. NAB said the deal will deliver better and more innovative products for customers. The bank flagged new payment options such as digital wallets, like those available on smart phones, as important innovations.

The move comes as banks are believed to be having discussions with Apple and Google, over the introduction of Apple Pay and Android Pay, respectively. It has been reported that Apple is asking for a share of merchant fees, while Google is not.

The long-term strategic partnership will enable NAB to simplify its product offering and significantly invest in its credit and debit card portfolio. NAB group executive for Product & Markets, Antony Cahill, said the deal was designed to accelerate the delivery of payments innovation and product development for customers.

“Under the terms of the deal, NAB and Visa will work together to deliver improved digital capability and innovative payments solutions to the market,” Mr Cahill said.

“This is another important partnership that will position this bank to act more quickly for our customers with enhanced access to new payments capability, technology and insights.”

Mr Cahill said NAB Labs would work closely with Visa to design, experiment and develop new products.

“We want to ensure we prioritise the things that matter to our customers, designing products and solutions to meet their changing needs and bringing them to market as soon as possible,” he said.

“Australian payments are in a time of transformation, from mobile to connected devices to future innovations that haven’t been created yet. We’re looking forward to a productive long term collaboration,” said Visa’s group executive for Asia Pacific, Chris Clark.

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