Apple has announced it will open its iPhone’s NFC chip to third-party developers in multiple countries, including the US, UK, and several others, as part of its iOS 18.1 update.
This move comes after regulatory pressure from both the US and EU authorities, who have scrutinized Apple’s restrictive practices around its NFC technology, which powers Apple Pay and Apple Wallet.
Previously, only Apple’s apps could access the NFC chip, enabling the company to take a cut from credit card transactions made through its devices.
Although Apple had long allowed third parties to access the contactless technology for things like reading NFC tags, the EU antitrust case pushed the company to allow competitors to access the iPhone’s Secure Element tap-and-go mobile payments system.
That decision saved Apple from facing an antitrust fine that would have been equal to up to 10% of its total annual revenue, or around $40 billion.
Now, developers will be able to use this technology, provided they enter a commercial agreement with Apple, adhere to security and privacy standards, and pay associated fees.
This decision follows a settlement with the EU’s antitrust regulator in June and comes amid a broader antitrust lawsuit filed by the US Department of Justice.
The lawsuit accuses Apple of maintaining a monopoly by blocking other payment providers from offering alternatives to Apple Wallet.
Apple’s foray into the payments space has been both lucrative and challenging, with recent decisions to wind down partnerships with Goldman Sachs for its credit card and savings account services, and the discontinuation of its BNPL service in the US.
This latest move to open up its NFC chip could mark a significant shift in how third-party developers interact with Apple’s payment infrastructure, potentially paving the way for increased competition in the digital payments market.
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