Due to Apple Pay, Apple has become the target of a lawsuit in the US.

An Iowa-based chartered credit union, Affinity Credit Union, filed the class-action lawsuit in a federal court in California. The BBC contacted Apple for comment, but they did not react right away.

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Apple "coerces" users of its smartphones, smart watches, and tablets to use its own wallet for contactless payments, in contrast to manufacturers of Android-based devices that provide users a choice of wallets, such as Google Pay and Samsung Pay, the complaint claims.

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According to the complaint, Apple forbids users from utilising competing mobile wallets that can provide competing tap and pay options.

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The almost 4,000 banks and credit unions that utilise Apple Spend, according to Iowa's Affinity Credit Union, are compelled to pay at least $1 billion in extra fees each year as a result of Apple's anti-competitive behaviour. Additionally, it said that Apple's actions reduced the company's incentive to improve Apple Pay's functionality and make it more secure.

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Affinity Credit Union stated that "Apple's conduct damages not only issuers but also customers and competition as a whole." 

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"Apple could not maintain these high fees if there were competition."

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Unspecified damages and an end to Apple's claimed anti-competitive behaviour are sought in the case.