UK Regulator urges Apple to open up iPhone contactless tech and lower fees
The UK's CMA is urging Apple to open iPhone contactless tech and lower fees to boost payment app competition.
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| File photo: Apple Pay |
Another Challenge from Europe?
The United Kingdom's Competition and Markets Authority (CMA) has introduced a new set of proposals aimed at reducing Apple's strong control over the iPhone's contactless payment technology. The agency intends to open up the device's tap-and-go capabilities, allowing alternative payment apps a fair opportunity to compete.
Currently, when users want to utilize contactless payments on an iPhone, Apple's ecosystem rules dictate how this is implemented. The CMA points out that high fees, strict terms, and technical barriers have made it nearly impossible for competing wallet services to launch independent tap-and-go apps in the UK.
Despite the growing popularity of digital wallets, over 60 percent of UK adults now use them; Apple Wallet remains the most widely used option. This dominance has prevented rival fintech companies from successfully introducing standalone wallet alternatives, unlike what has occurred in the European Union.
What is CMA Proposing?
The Competition and Markets Authority (CMA) aims to create a more equitable environment in the mobile payment sector with a new framework that promotes two significant changes:
- Host Card Emulation (HCE): Currently, Apple relies heavily on its on-device Secure Element (SE) for processing transactions. The CMA is advocating for Apple to support HCE, a technology that allows payment applications to process transactions off-device.
- Lower Fees: The CMA proposes principles that would reduce Apple’s access fees, making it financially viable for other companies to compete in the market.
UK fintech companies, such as Revolut, have welcomed these changes, calling them a vital step to ensure local apps can compete on equal terms with larger tech companies.
Apple, however, is not supportive of these proposals. The tech giant has pushed back, asserting that developers can already provide secure contactless payment experiences within their apps using Apple’s existing NFC and SE technology. An Apple spokesperson stated that they do not believe the CMA should mandate an approach that could compromise user privacy and security.
Despite this disagreement, the CMA insists that its review has shown that alternative technical methods do not inherently compromise user security.
The proposals are currently open for public consultation until November 17, 2026. After reviewing feedback from the technology industry, banks, and consumers, the CMA will make a final decision on whether to legally implement these changes.
If enacted, these changes could fundamentally alter how people in the UK use their iPhones to make payments, take public transportation, and manage their digital finances.
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