Apple’s decision to open NFC access to third-party developers (enforced by regulators) marks a pivotal shift in the digital wallet landscape, presenting banks with a new opportunity to redefine their role in contactless payments.
As highlighted in Mobey Forum’s latest industry article, ‘Beyond Apple Pay – Opportunities for Banks in the digital wallet space,’ the key to success lies in collaboration and innovation beyond simple payments.
Historically, Apple Wallet was the only option for contactless payments on iPhones, restricting banks to Apple Pay integration.
However, the European Union’s regulatory intervention in 2024 forced Apple to grant third-party access to NFC technology.
This move allows banks and other 3rd parties to develop their own digital wallets, but competing directly with Apple Pay on payments alone is a losing battle.
Instead, banks must look beyond payments to build feature-rich wallets that integrate identity verification, tokenized assets and value-added services.
Why Single-Bank Wallets Won’t Work
While it might seem appealing for individual banks to launch their own wallets, history suggests that single-bank wallets struggle to gain traction.
The costs associated with development, marketing and customer acquisition often outweigh the benefits.
Moreover, Apple Pay’s seamless user experience makes it difficult for a single-bank wallet to differentiate itself.
Instead, banks should explore collaborative models, where multiple institutions join forces to create interoperable digital wallets.
Success stories like Bizum, Twint and Swish demonstrate that cooperative approaches can drive higher adoption and customer engagement.
The Real Opportunity: Beyond Payments
Competing with Apple Pay on transaction functionality alone is an uphill battle.
Instead, banks should focus on offering additional services that provide tangible value to consumers.
Mobey Forum identifies three key differentiators for a successful bank-led wallet:
- Context-Aware Payments – Future wallets should be intelligent enough to recommend the best payment method based on the user’s location, transaction type and spending behaviour.
- Digital Identity Integration – With NFC access, banks can offer secure digital identity verification, storing credentials such as government-issued IDs, travel passes and access cards. This extends the wallet’s utility beyond payments and reinforces banks’ positions as trusted custodians of customer data.
- Tokenized Assets and CBDCs – Banks can integrate tokenized financial assets, central bank digital currencies (CBDCs), and loyalty points into their wallets, creating a comprehensive financial ecosystem that goes beyond a simple payment tool.
Case Study: Vipps MobilePay’s NFC Breakthrough
In December 2024, Vipps MobilePay became the first third-party app to launch tap-to-pay functionality on iPhones using NFC technology.
By leveraging Host Card Emulation (HCE), Vipps MobilePay provided Norwegian users with an alternative to Apple Pay, demonstrating that banks and financial institutions can successfully implement their own payment solutions.
Vipps MobilePay’s approach also underscores the importance of regional adaptation.
In Norway, where Apple Pay had not yet been fully adopted by major banks, the introduction of tap-to-pay created a significant competitive advantage.
However, in markets like Denmark and Finland, where Apple Pay was already well-established, gaining market share required additional incentives such as cashback rewards and integrated loyalty programs.
Overcoming Market Fragmentation
While collaboration among banks is crucial, too many competing wallets could lead to market fragmentation, ultimately pushing consumers back toward the simplicity of Apple Pay.
To prevent this, regulatory support may be necessary to encourage standardization and interoperability among bank-led digital wallets.
Moreover, banks must focus on differentiation.
Features such as instant credit offerings, seamless integration with savings and investment accounts and enhanced fraud prevention mechanisms can help set their wallets apart from Apple’s ecosystem.
A Strategic Path Forward
The opening of Apple’s NFC access provides banks with an unprecedented opportunity to redefine digital wallets.
However, success will not come from replicating Apple Pay – it will require innovation, collaboration and the integration of value-added services beyond payments.
By leveraging their trusted relationships with consumers, banks can create digital wallets that offer enhanced security, convenience and financial management capabilities.
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