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Examining the Impact of ANZ Bank’s Support for Garmin Pay

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Jan. 4 2018, Updated 7:35 a.m. ET

Bank supports six mobile payment solutions

The Australia and New Zealand Banking Group (or ANZ), one of the largest banks in Australia, has joined the support for Garmin’s (GRMN) contactless payments service, Garmin Pay. ANZ’s addition of Garmin Pay made it the first Australian bank to support five different third-party payment solutions.

In addition to Garmin Pay, the bank supports Apple’s (AAPL) Apple Pay, Fitbit’s (FIT) Fitbit Pay, Samsung’s (SSNLF) Samsung Pay, and Google’s (GOOGL) Android Pay. Together with its own ANZ Mobile Pay, the bank supports six different mobile payment solutions.

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Bank initially supporting Visa cards

Payment with Garmin Pay on ANZ Bank’s network requires customers to pair Garmin’s Vívoactive 3 device with a Smartphone running either Apple’s iOS or Google’s Android mobile operating system. The bank is initially supporting Visa (V) cards for Garmin Pay transactions.

In coming to its decision to support Garmin Pay, ANZ Bank took note of the growing adoption of wearable devices. The bank said that over 26 million wearable gadgets had been shipped worldwide in 3Q17 alone.

Potential boost to APAC operations

For Garmin, getting support for its contactless payment service from a large financial institution such as ANZ Bank could go a long way toward stimulating its top line growth in the Asia-Pacific (or APAC) region.

In 3Q17, Garmin generated $109.8 million in revenue from the APAC, representing 14.8% of its total revenue in the quarter. The APAC was Garmin’s fastest-growing region, with revenue growth of 11% YoY (year-over-year) in 3Q17, compared to 6% YoY in the EMEA (Europe, the Middle East, and Africa) region. The Americas region, which includes US (SPY) sales, recorded a 2.0% YoY dip in sales in 3Q17.

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