Introduction: Britain’s competition regulator is moving to shake up mobile payments by demanding that Apple give outside companies broader and more affordable access to the NFC technology built into iPhones. The proposal could reshape how digital wallets, age verification tools, travel passes, keys, and loyalty cards work on Apple devices in the UK, while also putting pressure on Apple’s fees and technical restrictions.
The UK’s Competition and Markets Authority (CMA) has put forward measures that would require Apple to open its iPhone contactless system to third-party developers under fairer commercial conditions. The regulator argues that Apple’s current rules and pricing structure are preventing fintech companies and other businesses from launching competing services and limiting innovation in the country’s rapidly growing contactless payments market.
According to the CMA, several UK-based firms have warned that the existing terms for accessing Apple’s NFC system may not make commercial sense. Businesses reportedly say the fees are too high, the conditions are burdensome, and the lack of consistency between Apple’s requirements in different countries and on different platforms makes it harder to develop services that can scale internationally.
The regulator highlighted the difference between the UK and the European Union, where Apple has already made NFC access available for rival payment apps. Within six months of that change in the EU, Norway’s Vipps became the first alternative payment service to launch, followed by major names including PayPal, Klarna, Curve, and BBVA. In contrast, the CMA noted that no company has yet introduced a wallet-style product in the UK to compete directly with Apple’s own payment offering.
This gap is especially significant because contactless payments have become a major part of everyday spending in Britain. The CMA said contactless transactions now account for 39% of all payments in the UK, compared with just 3% ten years ago. More than 60% of adults in the country also use a digital wallet, with Apple Wallet remaining the most widely used option.
The CMA’s plan focuses on two main changes. The first would force Apple to support both leading international contactless standards: secure element (SE), where payment data is stored directly on the device, and host-based card emulation (HCE), where the data is stored remotely. At present, Apple only offers the secure element route in the UK. The regulator said the evidence it reviewed suggests neither model presents unavoidable security risks, and allowing both would make it easier for UK companies to offer payment services that already exist elsewhere in Europe.
The second part of the proposal targets cost. While the CMA does not intend to set fixed prices, it has laid out principles for how Apple’s charges should be determined. The regulator expects the final fees to be significantly lower than current levels, but still fair enough to recognize Apple’s investment and ongoing role. Beyond payments, the CMA believes more open access could support a wider range of uses, including digital identification, age verification, mobile keys for cars, hotels, and offices, transport tickets, event passes, and loyalty schemes.
Apple has pushed back against the proposals. A company spokesperson told Reuters that Apple does not believe the CMA should force it to adopt an approach that would reduce privacy and security protections. The company said it would continue to work constructively with the regulator to reach an outcome that serves users’ interests.
The consultation period will end on November 17, after which the CMA will review the responses before making a final decision. The proposal is being made under the UK’s Digital Markets, Competition and Consumers Act 2024, which applies to Apple because its mobile platform has been designated as holding Strategic Market Status.
Source | Via
