Apple Pay faces UK crackdown that could change iPhone tap-to-pay

The UK government aims to introduce more alternatives to Apple Pay for consumers, proposing to open up the technology for other companies and lower fees for access. Contactless payment tech on iPhones currently locks users into Apple's method, but the UK competition regulator, the Competition and Markets Authority (CMA), plans to propose new rules that could change this.

According to the CMA, Apple's fees and rules prevent fintechs and other businesses from innovating and growing in the UK. The CMA believes its changes could result in lower access fees, allowing more businesses to innovate and compete. Currently, no rivals to Apple Pay exist in the UK, unlike in the EU, where various alternatives are available.

The CMA suggests that Apple should allow third-party companies to use host card emulation (HCE) for free, similar to EU rules. This would give consumers the choice on how they pay and banks more flexibility in selecting their partners. Apple has opposed the CMA's proposals, arguing that they should not compromise on privacy and security.

The company believes it must maintain control over the user experience to prevent any negative reflection on its brand. If the CMA's changes go through, Apple may have to adjust its approach to contactless payments in the UK.