Following increasing pressure from DMA regulators, Apple announced last month that it will allow third-party developers in the European Union to access its tap-and-pay technology. Now, the company has confirmed that this feature will be included in the developer release for iOS 18.1. Interestingly, this feature will not be exclusive to EU countries; it will be available more broadly.
Currently, Apple Pay is the sole method for making NFC-based payments, although other apps can read NFC tags. This is set to change, as users will soon be able to select a different app to launch with a double-click of the iPhone’s Side button.
NFC (Near Field Communication) technology enables contactless transactions using the Secure Element within Apple apps. The European Commission has been scrutinizing Apple’s exclusive use of the iPhone’s NFC capabilities, accusing the company of stifling competition in mobile payments. To address this, Apple is expanding access to its NFC technology for third-party developers.
According to Apple’s press release, the new NFC and Secure Element (SE) APIs will be accessible to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US, with more countries to be added later. This means that developers can now implement NFC contactless payments and transactions within their apps, independent of Apple Pay and Apple Wallet.
It’s notable that Apple has not included India in this rollout, despite its growing market and booming digital payments sector driven by the Unified Payments Interface (UPI). While there have been speculations about Apple Pay launching in India, no official announcement has been made yet.
Apple’s decision to open up its NFC technology is significant, but the company will not be offering this feature for free.
Developers will need to enter into a commercial agreement with Apple, apply for the NFC and SE entitlements, and cover any associated fees. Although Apple has not disclosed specific amounts, it is clear that costs will be involved.
While it is a positive development for developers to gain deeper access to iPhone features, there is a potential for added complexity in contactless transactions. Apple Pay and Apple Wallet, being directly managed by Apple, offer a streamlined and secure experience that might not be replicated by third-party apps.
Despite this change, Apple Pay and Apple Wallet will continue to provide their current, straightforward, and secure functionalities. We can expect further updates and changes with the upcoming ios 18 and the iPhone 16, set to debut next month.
