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Apple to open up NFC payments access to third parties

Apple is opening up the NFC chip technology that enables iPhone users to make contactless payments to third-party providers in a host of countries - including the US and UK - but will charge associated fees.

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Apple to open up NFC payments access to third parties

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The move comes in the face of regulatory pressure in the US and in the wake of a recent deal with the EC to resolve an antitrust case.

It 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 NFC contactless transactions using the Secure Element from within their own apps on iPhone, separate from Apple Pay and Apple Wallet.

Developers, however, will need to enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the "associated fees".

Until now, Apple Pay has been the only mobile payment service that may access the NFC 'tap and go' technology embedded on iOS mobile devices for payments in stores, a process that has been damned by banks in a number of jurisdictions for preventing competition from their own proprietary apps.

Earlier this year, facing the threat of multi-billion dollar fines, the US tech giant made a 10-year commitment to the EC to allow third-party mobile wallet and payment service providers to access and interoperate the NFC functionality on iOS devices through a set of APIs free of charge, without having to use Apple Pay or Apple Wallet.

In addition, the US Justice Department has included access to the NFC chip technology as part of its wide-ranging lawsuit accusing the firm of monopolising the smartphone market.

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Comments: (1)

John Davies CTO at Incept5


This could well be a game-changer in the payments world, very exciting.

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