Regulator's proposals

The Competition and Markets Authority, the UK's competition watchdog, has proposed that Apple open up the near field communication chip in iPhones to more third parties, on fairer terms. The regulator says businesses told it that Apple's fees, contract terms and technical restrictions make it hard for challengers to build competing products. CMA chief executive Sarah Cardell argued that removing those barriers could help British fintech firms develop payment apps, digital IDs and travel passes. The CMA also expects the proposals to bring lower access fees.

Cardell put the case for the plan in direct terms:

“These proposals open the door to more innovation, more choice and economic growth, including in the UK's important fintech sector.”

The EU precedent

Apple agreed in 2024 to give developers NFC access for payments in the European Union, along with access to features such as Face ID authentication. The commitment also spared Apple a possible antitrust fine of up to 10% of its worldwide annual turnover. Six months after that agreement, Vipps was first to launch an alternative payment app, with PayPal, Klarna, Curve and BBVA following it. In the UK, by contrast, the CMA says not a single firm has launched a comparable wallet, even though contactless now makes up 39% of all payments, up from 3% a decade before this consultation. Over 60% of UK adults use a digital wallet, and Apple Wallet is the most popular.

What the CMA is proposing

The first proposal would require Apple to support both of the main contactless standards used internationally. Secure element keeps payment data on the device, while host-based card emulation keeps it off the device, and Apple currently offers only the first in the UK. The CMA's evidence indicates that neither standard raises inherent security concerns, and supporting both would let UK firms launch services already live in the EU. The second proposal concerns price. The regulator will not set fees itself but has proposed principles for how they should be determined, and it expects the result to be 'substantially lower' than Apple's current charges while still rewarding Apple fairly. Beyond payment apps, the CMA sees the opening enabling digital IDs and age checks, digital keys for cars, hotels and workplaces, tickets, travel passes and loyalty schemes.

Apple's objections

Apple has resisted the plan, and a spokesperson told Reuters that the company objects to it on privacy and security grounds.

“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections.”

Apple says it already lets developers in the UK and elsewhere offer contactless transactions inside their own apps through its NFC and SE Platform. It lists in-store payments, transit passes, car keys and event tickets among the uses, and argues that this setup lets banks and developers compete while keeping user data protected. The company has also said it will keep working with the regulator toward a result that serves its customers. Banks and other payment firms have separately raised concerns about the fees Apple charges.

Next steps

The consultation closes on 17 November 2026, after which the CMA will review the responses before making a final decision.

David Geale, the FCA's executive director for consumers, payments and competition, backed the regulator's effort to strengthen competition and innovation in payments. No final decision has been made, and the outcome remains open.