Fintech Insights: Apple is Enabling Third Parties to Access its NFC Technology for Payments, but is it Enough to Placate Regulators?

Apple is providing access to its NFC chip technology that facilitates iPhone users to make contactless payments to third-party providers in the US, UK, Australia, Brazil Canada, Japan, and New Zealand. Starting with iOS 18.1, developers will be able to offer NFC contactless transactions from within their own apps on iPhone; independent from Apple Pay and Apple Wallet. However, developers are required to enter a commercial agreement with Apple, request NFC access, and pay associated fees.

This development from Apple is seemingly in response to regulatory pressure in the US, where the company is facing a lawsuit from the US Justice Department. Specifically, the Department accused Apple of monopolising the smartphone market, with its NFC chip technology being one reason behind the accusation. In contrast, Apple made a 10-year commitment to the European Commission to allow third-party digital wallet and payment service providers access and interoperate the NFC functionality on iOS devices through APIs for free in the EU (European Union).