Apple is opening up NFC chip technology that allows iPhone users to make contactless payments to third-party providers in a variety of countries – including the US and UK – but will charge fees for doing so.
editorial
This content was selected, created and edited by the Finextra editorial team based on its relevance and interest to our community.
The move comes amid regulatory pressure in the US and in the wake of a recent agreement with the European Commission to resolve an antitrust case.
This means that starting with iOS 18.1, developers – initially in Australia, Brazil, Canada, Japan, New Zealand, the UK and the US – will be able to offer contactless NFC transactions using the Secure Element from within their own apps on iPhone, separate from Apple Pay and Apple Wallet.
However, developers must enter into a commercial agreement with Apple, apply for NFC and SE entitlement, and pay the “related fees.”
Until now, Apple Pay was the only mobile payment service that could access the NFC tap-and-go technology built into iOS mobile devices for in-store payments, a practice that has been condemned by banks in a number of jurisdictions for inhibiting competition on their own proprietary apps.
Facing billions of dollars in fines, the US tech giant earlier this year made a 10-year commitment to the European Commission to allow third-party mobile wallet and payment processors to access and interoperate with NFC functionality on iOS devices to enable a range of APIs for free without having to use Apple Pay or Apple Wallet.
Additionally, the U.S. Department of Justice has included access to NFC chip technology in its wide-ranging lawsuit accusing the company of monopolizing the smartphone market.
