Australia's major banks are reportedly at odds with Apple over what those financial institutions would pay the tech giant for every Apple Pay transaction made by users, according to a report from the Financial Review.

At the center of the debate is the $2 billion in interchange fees the banks make per year. In the U.S., it is believed that Apple earns 15 cents on every $100 spent. Australian banks, however, reportedly are not willing to to give in to Apple's demands since interchange fees in the country are less than those in the U.S.

Ian Narev, CEO of Commonwealth Bank of Australia, has not commented directly on negotiations with Apple, but recently said he believes the company will face challenges establishing Apple Pay in the country thanks to exisiting products.

"By most global standards, the capability that the Australian banking sector has generally, and Commonwealth Bank has specifically, to provide for customers is ahead of a lot of the other markets around the world where Apple has done well," Narev said last week after an earnings report. "There is functionality associated with Apple Pay that we have had in the market for 18 months to two years." 

The Financial Review also reported two concerns the banks have about Apple Pay.

Firstly, the Reserve Bank of Australia is forcing banks to contribute to the cost of building a real-time payments infrastructure and the banks reportedly don't want Apple to take advantage of this investment without contributing to the project.

Secondly, banks are concerned about customer disintermediation caused by Apple Pay.