Apple has announced that starting with iOS 18.1, developers will have access to its near-field communication (NFC) technology. This means that developers will be able to offer contactless transactions through their apps using the iPhone’s Secure Element, bypassing the need for Apple Pay and Apple Wallet.
The new NFC and Secure Element APIs will enable a range of applications, including in-store payments, car keys, transit passes, corporate badges, and more, with government IDs expected to be supported in the future.
This decision comes after an agreement between Apple and the European Commission (EC), following accusations that Apple had violated competition laws by restricting access to its payment technology.
By opening its NFC capabilities to third-party developers, Apple aims to avoid regulatory penalties while also fostering competition in the mobile payments space. This move aligns with Apple’s previous commitment made in June to expand access to its payments technology.
EU officials, including Margrethe Vestager, the vice president in charge of competition policy, have welcomed the move. Vestager noted that competitors will now have a fair chance to compete with Apple Pay for mobile payments on iPhones, offering consumers more options for safe and innovative digital wallets. This marks a significant step towards broader access to payment technology in the European market.
In the U.S., NFC technology has also been a point of contention between Big Tech and regulators. A report by the Consumer Financial Protection Bureau (CFPB) emphasized that increased access to Apple’s NFC technology could drive innovation and encourage the development of new features by various service providers, such as banks, retailers, and payment app creators. This would help retain customers and push the development of more advanced tap-to-pay applications.
Lastly, the growth of contactless payments has been highlighted in various events, including the Paris Olympics. The games demonstrated the potential of digital payments, with the need for seamless transactions driving the adoption and advancement of payment technologies. This trend, seen on a global scale, further showcases the growing importance of NFC and contactless payment solutions in today’s world.
