By Paul Sandle
LONDON, Oct 20 (Reuters) – Britain’s competition regulator said on Tuesday it was seeking to loosen Apple’s grip on contactless payments by proposing that the company lower fees and remove technical barriers, helping rival services compete with Apple Pay.
The Competition and Markets Authority (CMA) said its proposals would result in “substantially lower access fees” and easier access to Apple’s contactless technology.
The measures are less onerous than those imposed by the European Union in 2024, which included free access for third-party developers. Companies including PayPal, Klarna, Curve and BBVA have since launched alternative payment apps, the CMA said.
‘HIGH FEES, STRICT TERMS’
The EU commitments require Apple to give wallet developers access to the iPhone’s NFC chip using host card emulation (HCE), allowing third-party apps to process contactless payments without going through Apple Pay or Apple Wallet.
The CMA’s proposals would give developers access to HCE in addition to Apple’s existing secure element (SE) technology.
The regulator can impose requirements on Apple after designating it and Google as having strategic market status in smartphones last year.
Contactless payments account for 39% of all payments, compared with 3% a decade ago, the CMA said. More than 60% of adults use a digital wallet, with Apple Wallet the most popular in Britain.
CMA Chief Executive Sarah Cardell said the proposals would boost innovation, consumer choice and Britain’s fintech sector.
“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,” she said.
The CMA is consulting on the proposals until November 17, before making a final decision.
Digital bank Revolut welcomed the proposals, saying access to NFC technology through HCE was critical.
“The CMA’s direction creates a real opportunity for UK fintechs to compete on an equal footing with Big Tech,” said Revolut’s chief commercial officer, David Tirado.
Apple said developers could already offer contactless payments through its NFC technology and secure element, which stores sensitive information such as card credentials and cryptographic keys.
It said this enabled services including in-store payments, transit passes and event tickets while protecting users’ data.
“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections,” an Apple spokesperson said.
“We will continue to engage constructively to reach an outcome that is in the best interest of our users.”
(Reporting by Paul Sandle; editing by William James)
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