UK Proposes New Ways to Help Apple Pay Rivals

The Competition and Markets Authority (CMA) in the UK has suggested modifications to facilitate the availability of alternative apps to Apple Pay on iPhones (via Reuters). Apple's fees and restrictions pose significant barriers for competitors aiming to develop contactless payment applications, according to the CMA. The regulator's proposals would provide developers with enhanced access to the iPhone's NFC technology, enabling users to make payments by placing their device near a payment terminal.

In 2024, Apple began granting developers access to NFC in the UK; however, they must sign an agreement with Apple, pay fees, and utilize the iPhone's Secure Element, a chip that safeguards sensitive data like payment credentials. The CMA recommends that Apple also support host card emulation (HCE), an alternative option that allows payment apps to function without the Secure Element.

Additionally, the CMA intends to impose rules that would likely substantially reduce Apple's access fees, though the company would still be able to charge a fee. Apple already offers HCE access without cost in the European Union based on agreements made in 2024. The regulator notes that rival payment apps have emerged in the EU since Apple introduced these terms, while no competing wallet-type service has launched in the UK under Apple's existing conditions.

Apple asserts to Reuters that developers can already enable contactless services using its technology: "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections. We will continue to engage constructively to reach an outcome that is in the best interest of our users." The CMA declared that the evidence it examined did not indicate that either option is inherently insecure.

The proposals are subject to public consultation until November 17, 2026, and the CMA will render a final decision following the review of responses.