UK Regulators Move to Boost Competition for Apple Pay
Regulators demand lower fees and open NFC access to enable alternative mobile wallets.
The UK's Competition and Markets Authority (CMA) has introduced a new initiative aimed at creating a competitive environment for Apple's payment system. The regulator believes current restrictions and high commission fees prevent other companies from offering alternative contactless payment apps on the iPhone platform.
Expanding access to NFC technology
Contactless payments on iPhone rely on Near Field Communication (NFC) technology. Although Apple granted third-party developers access to this feature in 2024, the process remains complex. Developers are required to sign a special agreement with Apple, pay fees, and strictly use the company's proprietary Secure Element chip to store payment data.
The CMA's proposal includes requiring support for Host Card Emulation (HCE). This technology enables payment apps to operate without the Secure Element, making the process more flexible and cheaper. The regulator also demands that Apple substantially reduce the fees developers pay to use this technology.
European experience and Apple's position
A similar approach has already been implemented in the European Union, where Apple provided access to HCE free of charge following an agreement reached in 2024. UK regulators note that several competing digital wallets emerged on the market following the EU decision, whereas Apple's current policy in the UK has prevented similar products from launching.
For their part, Apple representatives state that the company already allows developers to offer contactless services to users. The tech giant fears the proposed changes will negatively affect user security and privacy. However, the CMA stated that the data it reviewed does not indicate HCE is any less secure than the existing system.
What do these changes mean?
The proposals are currently open for public consultation, with interested parties able to submit their views until 17 November 2026. The CMA will make its final decision after this deadline.
Although these regulations directly target the UK market, such regulatory shifts often set global trends. For users in Georgia who actively use Apple Pay, this could mean a wider choice and increased competition among fintech apps, ultimately leading to improved services and additional benefits over time.