Apple Offers to Open NFC Payment Technology to Third-Party Developers in Europe

[MacRumors]

Apple has proposed opening its NFC payment technology to third-party developers in Europe, allowing direct rivals to Apple Pay to operate on the iPhone for the first time.

Historically, the use of Apple's NFC chip in iPhones and Apple Watches for payments has been exclusively utilized by Apple Pay, limiting the ability of banks and other financial services to offer their own contactless payment solutions on Apple's platforms. In a statement to Reuters, Apple said:

We have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet.

The concession comes as part of Apple's efforts to address antitrust charges levied by the European Commission, which accuse the company of stifling competition by restricting third-party access to NFC capabilities on iOS devices.

Under the proposed commitments, developers of payment, banking, and digital wallet applications in the European Economic Area (EEA) will be able to integrate their own solutions with the NFC chip on Apple devices. This change means that consumers could have the option to use NFC-enabled apps from other providers, alongside or instead of Apple Pay. The commitment reportedly includes additional functionalities such as defaulting to preferred payment apps and integrating with Apple's security features like Face ID.

While the focus of these changes is within the EEA, a region broader than the European Union, the implications of the shift could have a broader impact on the mobile payments market globally. The EEA covers the overwhelming majority of the European market, and Apple's decision could set a precedent for its operations in other areas of the world in the future as antitrust scrutiny increases.

As part of the review process, the European Commission is currently seeking feedback from rival companies and customers on Apple's proposed concessions. The final decision will consider the responses from these stakeholders. If approved, the implementation of Apple's proposed commitments will be monitored by a trustee reporting to the Commission.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Offers to Open NFC Payment Technology to Third-Party Developers in Europe

 

[jlc1978]

It makes sense as long as Apple isn't held responsible for any problems with 3rd party apps and 3rd party apps have to offer access on the same non-discriminatory basis.

 

[contacos]

Offered? I thought they were forced to by Germany at least anyway

 

[HQuest]

Now it will be just a matter of time until every app out there begin syphoning credit card details - some extending into fraudulent operations. Apple be like “told ya”. EU will be like *poker face*, banks will be like “not our problem you used that shady app” and as usual, customers will be left without their money.

 

[ApplesAreSweet&Sour]

Offered? I thought they were forced to by Germany at least anyway

I think they were about to be forced and then made the changes on their own to avoid being forced.

You know, sort of like how we got rid of the archaic Lighting ports on iPhones?

 

[CharlesShaw]

“…alongside or instead of Apple Pay”

I’m curious how [edit: if it can be made convenient] NFC-enabled apps will work alongside Apple Pay if the consumer wants both.

[Also, Wallet App offers an express mode for transit passes. Will the banking apps be allowed to control that express mode for payments if the consumer wants that?]

 

[jlc1978]

“…alongside or instead of Apple Pay”

I’m curious how NFC-enabled apps will work alongside Apple Pay if the consumer wants both.

They could modify settings to allow you to chose teh default app, and if you want the other you must open the app to use it's NFC.

I just don't see the value of having a 3rd party app when I already have the cards I want in my wallet. A PayPal NFC app to let me use my PayPal balance? Or my Venmo balance? Maybe but not as my primary payment choice.

 

[scheinderrob]

how bout them regulations, apple?

keep em coming, EU

 

[Yujenisis]

“…alongside or instead of Apple Pay”

I’m curious how NFC-enabled apps will work alongside Apple Pay if the consumer chooses both.

Probably exactly as it does now? The NFC chip only works with an active app that is using it which in this case is exclusively the Wallet App. So:

If a user launches the HSBC App then the HSBC app would then be able to use the NFC chip after the user grants access. Done.

The problem is this is an inferior experience to having all my cards in a single Wallet App but but most corporations and banks have long since stopped caring about user experience. They just want to control it.

 

[AeroZ]

The EU probably wants it mainly for their own in development EU eWallet.

 

[Appleman3546]

So security is no longer a concern? I guess Apple should open NFC up to everyone then even outside the EU

 

[BigDO]

Great news. This is how regulation is supposed to work.

 

[4nNtt]

It is the right thing to do, but it may result in some banks no longer participating in Apple Pay which is more then just a NFC payment solution…

 

[walnuts]

I just don’t get this- why is this good for the consumer? Seems like I buy a device with a payment system that is built in and nifty, and the fact that we all have it encourages credit cards to support it. Now we are gonna have a separate payment system for each card that tracks all our data. Seems cumbersome and worse for the customer.

 

[CharlesShaw]

Probably exactly as it does now? The NFC chip only works with an active app that is using it which in this case is exclusively the Wallet App. So:

If a user launches the HSBC App then the HSBC app would then be able to use the NFC chip after the user grants access. Done.

So the Wallet App is opened with a convenient double-click on the iPhone and Apple Watch, but to use the banking app with NFC, you’ll have to open the app. I see the EEA wanting it to be more convenient. Perhaps this is a use for the Action button.

[Thanks to @walnuts I can imagine a scenario where my preferred bank card that gives me 5% back on groceries decides it will no longer support Apple Pay, but only their own app that I have to open separately.] [And not just banks, but retail stores could choose their own bank cards and apps over participating in Apple Pay.]

 

[4nNtt]

So security is no longer a concern? I guess Apple should open it up to everyone then even outside the EU

They would need to be part of a credit card network for it to work. It isn’t opened to literally everyone.

 

[4nNtt]

I just don’t get this- why is this good for the consumer? Seems like I buy a device with a payment system that is built in and nifty, and the fact that we all have it encourages credit cards to support it. Now we are gonna have a separate payment system for each card that tracks all our data. Seems cumbersome and worse for the customer.

Banks can already track your data.

 

[spazzcat]

how bout them regulations, apple?

keep em coming, EU

Just don't cry about how much more stuff cost, everything comes with a cost. I'm 100% regulations for things like clean water/air, predatory fees, etc, but telling a business who and how they can use your own technology is bit of stretch. It will most likely lead to less innovation.

 

[Beautyspin]

how bout them regulations, apple?

keep em coming, EU

Unfortunately, the only language Apple understands.

 

[I7guy]

So security is no longer a concern? I guess Apple should open it up to everyone then even outside the EU

The EU has already decided security is not relevant to the iPhone experience. iPhone users in the EU will probably be enjoying a future with scams and phishing.

 

[I7guy]

Just don't cry about how much more stuff cost, everything comes with a cost. I'm 100% regulations for things like clean water/air, predatory fees, etc, but telling a business who and how they can use your own technology is bit of stretch. It will most likely lead to less innovation.

And higher prices.

 

[Beautyspin]

Probably exactly as it does now? The NFC chip only works with an active app that is using it which in this case is exclusively the Wallet App. So:

If a user launches the HSBC App then the HSBC app would then be able to use the NFC chip after the user grants access. Done.

The problem is this is an inferior experience to having all my cards in a single Wallet App but but most corporations and banks have long since stopped caring about user experience. They just want to control it.

As opposed to Apple wanting to control things? Apple will have to do things the way Android does it now, I suppose.

 

[polyphenol]

Does anyone understand whether the special arrangements that apply to Northern Ireland will mean opening it up there as well?

(Obviously, referring to EEA automatically excludes the UK.)

 

[Beautyspin]

I just don’t get this- why is this good for the consumer? Seems like I buy a device with a payment system that is built in and nifty, and the fact that we all have it encourages credit cards to support it. Now we are gonna have a separate payment system for each card that tracks all our data. Seems cumbersome and worse for the customer.

Disadvantages of limiting NFC access on Apple devices:
Payment options are limited and Apple Pay, which relies on NFC, has become the dominant contactless payment method on iPhones. This excludes users who prefer alternative mobile wallets like Google Pay or Samsung Pay, which may offer wider compatibility or different features.
By controlling NFC access, Apple can limit the development of other NFC-based applications and functionalities beyond Apple Pay. This could stifle innovation in areas like peer-to-peer payments, data sharing, and other creative uses of NFC technology.
Users become locked into the Apple ecosystem for NFC-based features, limiting their flexibility and potentially leading to higher costs compared to open platforms.
Apple's restrictions might hinder the overall adoption of contactless payments outside of the Apple ecosystem, as developers have less incentive to create NFC-based applications for non-Apple devices.
By controlling access to NFC, Apple has a stronger hold on the mobile payment market, potentially stifling competition and innovation from other companies.
Apple's approach to NFC might contribute to a fragmented landscape of mobile payment solutions, hindering interoperability and user convenience.

 

[Jim Lahey]

Another small frog added to the simmering pot of government overreach. The EU absolutely will not stop, ever, until they’ve reduced iOS security to a pile of burning embers. And folk are championing their efforts as if it’s all in the name of the end user. Lol.