Britain’s competition regulator has proposed measures to make it easier for rival payment services to compete with Apple Pay, including lower access fees and fewer technical restrictions on the iPhone maker’s contactless payment technology.
The Competition and Markets Authority (CMA) said on Tuesday that its proposals would give developers easier access to Apple’s technology, potentially opening up the market to more digital wallet providers and fintech companies.
The regulator said the changes could lead to “substantially lower access fees” and help competing services develop payment products for iPhone users without facing barriers imposed by Apple.
The proposals are less stringent than measures introduced by the European Union in 2024, which required Apple to provide third-party developers with free access to its contactless payment technology. Since then, companies including PayPal, Klarna, Curve and BBVA have launched alternative payment applications, according to the CMA.
Under the EU measures, developers can access the iPhone’s near-field communication (NFC) chip through host card emulation (HCE), a technology that allows third-party applications to process contactless payments without relying on Apple Pay or Apple Wallet.
The CMA’s proposals would allow developers to use HCE alongside Apple’s existing secure element technology, which stores sensitive information such as payment card credentials and cryptographic keys.
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The regulator gained the authority to impose requirements on Apple after designating the company and Google as having strategic market status in smartphones last year.
Contactless payments have become increasingly popular in Britain, accounting for 39 per cent of all payments, compared with just three per cent a decade ago. More than 60 per cent of adults now use a digital wallet, with Apple Wallet the most popular in the country, the CMA said.
CMA Chief Executive, Sarah Cardell, said the proposals would promote innovation, expand consumer choice and support the country’s financial technology sector.
“We have heard that high fees, strict terms, and technical restrictions relating to Apple’s contactless technology make it too difficult for challengers to innovate and compete,” Cardell said.
The regulator is consulting on the proposals until November 17 before making a final decision.
Digital bank Revolut welcomed the move, saying access to NFC technology through HCE was critical to enabling alternative payment services to compete.
“The CMA’s direction creates a real opportunity for UK fintechs to compete on an equal footing with Big Tech,” said Revolut’s Chief Commercial Officer, David Tirado.
Apple, however, raised concerns about the potential implications for user privacy and security.
The company said developers could already provide contactless payment services using its NFC technology and secure element, which also supports services such as transit passes and event tickets.
“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections,” an Apple spokesperson said.
The company added that it would continue engaging with the regulator to reach an outcome it considered to be in the best interests of its users.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
