UK watchdog proposes forcing Apple to open iPhone contactless payments to rivals

CMA says high fees and restrictive terms stifle competition; Apple warns of lower privacy and security

By LineZotpaper

Published20 October 2026

Updated20 October 2026

Read Time2 min

Sources2 outlets

The Competition and Markets Authority (CMA) has proposed requiring Apple to open its iPhone near-field communication (NFC) technology to rival payment providers on fairer commercial terms, potentially allowing users to make contactless payments through apps other than Apple Pay. The watchdog said Apple's current high fees and restrictive terms were preventing businesses from developing alternatives, and it expects access charges to fall substantially.

The CMA said on Tuesday that Apple's control over the NFC chip in iPhones, which enables contactless payments, was stifling competition. Under the proposals, Apple would have to support both major international NFC standards rather than the single approach currently available to UK developers. The watchdog would also require Apple to justify its access charges against principles covering costs, value and fairness.

"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," said CMA chief executive Sarah Cardell. "By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here."

The fintech and banking industry welcomed the move. David Tirado, chief commercial officer at Revolut, said: "The CMA's direction creates a real opportunity for UK fintechs to compete on an equal footing with Big Tech." Adam Jackson, chief strategy officer at Innovate Finance, added: "Opening access to these can support competition and further innovation across fintech products including payments." A spokesperson for UK Finance, a banking trade body, said open access would reduce "reliance on a single wallet provider."

Apple introduced a system allowing third-party developers to access its NFC technology in Britain in 2024, but the CMA said no rival wallet-type product had launched through the arrangement. In the EU, alternative payment services from providers including PayPal and Klarna have launched following regulatory intervention.

An Apple spokesperson said: "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections. We will continue to engage constructively to reach an outcome that is in the best interest of our users."

Analysis

Why This Matters

The proposals could lower costs for businesses that process contactless payments and give iPhone users more choice beyond Apple Pay.
The decision could set a precedent for how regulators treat Apple's control of NFC technology in other markets.
A final decision is expected in 2025, and the outcome may influence how other digital wallet markets develop.

Background

Apple has long restricted access to the NFC chip in iPhones, allowing only Apple Pay to process contactless payments directly. The company argued this was necessary for security and privacy. In 2024, under pressure from regulators, Apple introduced a system for third-party developers to access NFC in the UK, but no competing wallet has launched through it. The European Commission forced similar changes in the EU, where Apple agreed to open NFC access for a decade. The CMA began investigating Apple's mobile ecosystem in 2022 and has already imposed remedies on Apple's App Store policies.

Key Perspectives

Apple: The company argues that opening NFC access without its security and privacy framework could expose users to fraud and data breaches. It says it will continue to engage with the CMA but does not believe the watchdog's approach is justified. Fintech and banking industry: Rivals and trade bodies say Apple's control has blocked innovation and kept fees high. They want the same open access that EU developers now have, enabling new payment apps, digital IDs, and transit passes. Critics and sceptics: Some may question whether even lower fees will pass savings to consumers, and whether security risks could increase if multiple apps access NFC without Apple's oversight.

What to Watch

The CMA's final decision expected in 2025, including whether Apple appeals or adopts changes voluntarily.
Whether rival wallet apps from companies like Revolut, PayPal or Klarna launch quickly in the UK after the remedy.
If other competition authorities, such as the ACCC in Australia or Japan's FTC, cite the UK decision as a model for their own investigations.

Sources

Apple faces UK crackdown over iPhone contactless payments · City AM
Apple should open access to contactless payment systems, says regulator · The Irish News

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedThe CMA has proposed requiring Apple to open iPhone contactless payments to rival providers.City AM: “The watchdog has proposed requiring the US tech giant to open up its near-field communication (NFC) technology, which enables contactless payments, on fairer commercial terms.”
SupportedThe CMA says Apple’s high fees and restrictive terms were stifling competition and preventing businesses from developing alternatives.City AM: “The Competition and Markets Authority (CMA) said on Tuesday that Apple’s high fees and restrictive terms were stifling competition, preventing businesses from developing alternatives to Apple Pay.”
Partly supportedApple warns that the proposal would mean lower privacy and security protections.City AM: “We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections.”
Partly supportedThe CMA said Apple’s control over the iPhone NFC chip was stifling competition.City AM: “The Competition and Markets Authority (CMA) said on Tuesday that Apple’s high fees and restrictive terms were stifling competition”
SupportedThe CMA proposed requiring Apple to support both major international NFC standards instead of the single approach available to UK developers.City AM: “The watchdog is proposing that Apple support both major international NFC standards, rather than the single approach currently available to UK developers.”
SupportedSarah Cardell said high fees, strict terms and technical restrictions make it too difficult for challengers to innovate and compete.City AM: ““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”, said CMA chief executive Sarah Cardell.”
SupportedSarah Cardell said removing barriers could help British businesses develop new products and services.City AM: ““By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here”.”
SupportedDavid Tirado said the CMA’s direction creates an opportunity for UK fintechs to compete on equal footing with Big Tech.City AM: ““The CMA’s direction creates a real opportunity for UK fintechs to compete on an equal footing with Big Tech,” said David Tirado, chief commerical officer at Revolut.”
SupportedAdam Jackson said opening access can support competition and further innovation across fintech products, including payments.City AM: “Adam Jackson, chief strategy officer at fintech industry body Innovate Finance, said: “Opening access to these can support competition and further innovation across fintech products including payments”.”
SupportedA UK Finance spokesperson said open access would reduce “reliance on a single wallet provider.”City AM: “They added the open access to NFC functionality on Apple’s operating systems would support innovation “reduce reliance on a single wallet provider.””
SupportedApple introduced a system for third-party developers to access its contactless technology in Britain in 2024, but no rival wallet-type product had launched through it, according to the CMA.City AM: “Apple introduced a system allowing third-party developers to access its contactless technology in Britain in 2024, but the CMA said no rival wallet-type product had launched through the arrangement.”
SupportedAn Apple spokesperson said the company would continue to engage constructively to reach an outcome in users’ best interests.City AM: “We will continue to engage constructively to reach an outcome that is in the best interest of our users.”