Apple is expanding access to its NFC chip technology, which enables iPhone users to make contactless payments, allowing third-party providers in various countries, including the US and the UK, to utilize it, though associated fees will apply.
This decision comes amid increasing regulatory scrutiny in the US and follows a recent agreement with the European Commission to address an antitrust issue. Starting with iOS 18.1, developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US will be able to facilitate NFC contactless transactions through their apps on iPhones, independent of Apple Pay and Apple Wallet.
To use this functionality, developers will need to enter into a commercial agreement with Apple, apply for the NFC and Secure Element entitlement, and pay the required fees. Until this point, Apple Pay has exclusively utilized the NFC ‘tap and go’ technology for in-store payments on iOS devices, an arrangement that has attracted criticism from banks in various regions for hindering competition from their proprietary apps.
Earlier this year, facing the prospect of significant fines, Apple committed to a 10-year agreement with the European Commission, allowing third-party mobile wallet and payment service providers access to the NFC capabilities on iOS devices via a set of APIs at no charge, independent of Apple Pay or Apple Wallet use. Furthermore, the US Justice Department has included access to the NFC chip technology as a key aspect of its ongoing lawsuit alleging that Apple monopolizes the smartphone market.