Apple and iPhone

iPhone Users in Europe Gain More Payment Options as Apple Opens NFC Technology

In a significant shift, Apple has agreed to open its contactless payments technology to rival providers, meaning iPhone users in Europe will no longer be restricted to using Apple Pay for mobile payments. This decision comes in response to increasing regulatory pressure from European authorities.

The European Commission, the EU’s executive body, announced the development on Thursday, stating that the move would enhance competition in mobile payments on iPhones. This change is part of broader scrutiny Apple faces under the EU’s Digital Markets Act, which could lead to substantial fines for the tech giant.

“iPhone users will now be able to use their preferred mobile wallet for payments in stores, while enjoying all the iPhone functionalities, including double click, tap-and-go, and Face ID,” said Margrethe Vestager, the EU’s competition chief.

Apple has until July 25 to implement these changes, which will be in effect for 10 years across the 30 countries in the European Economic Area. Under the agreement, third-party mobile wallet developers will gain free access to the near-field communication (NFC) technology used for contactless payments on iPhones. Additionally, iPhone users will have the ability to select their default mobile wallet.

“Apple is providing developers in the European Economic Area with an option to enable NFC contactless payments and other transactions from within their iOS apps,” Apple said in a statement. “Apple Pay and Apple Wallet will continue to be available in the European Economic Area for users and developers.”

The European Commission initially raised objections to Apple’s practices in 2022, following a formal antitrust investigation into Apple Pay launched in 2020. Regulators found that Apple had abused its market position by limiting access to the NFC technology required for mobile payments, thereby forcing users to rely solely on Apple Pay.

“From now on, Apple can no longer use its control of the iPhone ecosystem to keep competing mobile wallets out of the market,” Vestager said. “Competing wallet developers and consumers will benefit from these changes, opening up innovation and choice while maintaining secure payments.”

Notably, these commitments do not extend to Apple Watches. Vestager explained that the number of users making payments with Apple Watches is relatively small, and the exclusion of these devices is considered to cause “limited harm.”

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