The CMA Advocates for Enhanced Access to iPhone’s Contactless Technology for Competitors
The UK’s Competition and Markets Authority (CMA) has unveiled a proposal aimed at facilitating cheaper access to the iPhone’s contactless technology for rival payment firms.
Announced on 20 October, the consultation period extends until 17 November. This initiative could potentially empower other digital wallet platforms to compete more effectively against Apple Pay.
Central to this proposal is the near-field communication (NFC) technology, enabling seamless communication between phones and payment terminals.
The CMA contends that Apple’s existing access protocols and associated fees may stifle the potential of UK fintech companies.
Although Apple opened its NFC platform to British developers in 2024, the CMA highlights that no competing wallet has yet emerged in the UK marketplace.
Concerns have arisen among businesses regarding the commercial viability of Apple’s prevailing arrangements. Many have expressed that the fees and terms are excessively burdensome, while varying technological frameworks across different markets hinder scalability.
In its consultation, the CMA asserted that the absence of substantial rollouts within the UK constitutes a ‘clear and pressing case for intervention.’
Details of the CMA’s Proposal
The proposal comprises two pivotal components. Firstly, it mandates that Apple provide access to both primary contactless standards utilized globally, thereby enabling UK companies to leverage host-based card emulation (HCE).
This technology permits data storage externally from the device, distinct from the secure element technology currently available, which confines data storage to the device itself.
The second component pertains to pricing. While the CMA refrains from establishing a fixed fee structure, it intends to outline a series of guiding principles governing fee regulations.
The expectation is that these alterations will culminate in significantly reduced charges compared to the current rates, aiming to ensure developer accessibility while guaranteeing Apple receives equitable compensation.
Bratby Law, a legal firm, indicated that fee structures would be constrained by four overarching principles: cost, value, flexibility, and simplicity. Thus, Apple would need to substantiate to the CMA that its charges conform to these criteria.
It is important to note that these measures are not yet implemented. The CMA is presently soliciting feedback regarding the proposed conduct requirements under the Digital Markets, Competition and Consumers Act 2024.
The justification for these requirements stems from Apple’s designation as having strategic market status for its mobile platform in 2025.
According to CMA statistics, the prevalence of contactless payments in the UK is on the rise. Data from UK Finance reveals that contactless transactions constituted 39% of all payments in 2025, a significant increase from a mere 3% a decade prior.
This statistic encompasses both contactless card payments and mobile payments. Research conducted by Which? indicates that 62% of UK adults utilize a digital wallet, with Apple Wallet emerging as the frontrunner.
The CMA also noted that the UK’s fintech sector contributes approximately £214 billion in turnover and supports over 360,000 jobs.
Apple Raises Security Objections
In response, Apple has voiced apprehensions regarding the proposed modifications. The company contends that developers can already furnish contactless services leveraging a combination of NFC technology and secure elements, an approach purported to safeguard user data.
Furthermore, Apple asserts that the CMA’s requirements should not mandate a method that compromises ‘higher privacy and security safeguards.’ The organization has expressed its intention to continue collaborating with the regulator.
Conversely, the CMA maintains its stance, asserting that available evidence does not indicate that either technology inherently poses security risks.
As noted by Chief Executive Sarah Cardell, feedback received by the CMA suggests that Apple’s existing fees, technical limitations, and conditions are rendering it excessively challenging for rival entities to innovate and compete.
Revolut has expressed support for the proposed changes. Chief Commercial Officer David Tirado believes that these adjustments could enable UK fintech firms to ‘compete on an equal footing with Big Tech.’
UK Finance echoed this sentiment, commending the CMA’s emphasis on enhancing digital wallet competition.
Additionally, Adam Jackson from Innovate Finance commented that expanded access could nurture competition and spur innovation in fintech products.
David Geale, Managing Director of the Payment Systems Regulator, stated that the intended modifications to access and fees ‘should cultivate greater competition and provide consumers and businesses with more options.’
He further emphasized that these changes would bolster the advancement of open banking in the UK.
Comparative Analysis with PayPal and the EU
Observations from the European Union offer a useful benchmark. In 2024, Apple consented to extend NFC access to rival wallet developers in the EU.
Six months later, Vipps debuted as the first alternative payment application. Following this, prominent firms such as PayPal, Klarna, Curve, and BBVA quickly followed suit.
PayPal, notably, initiated the distribution of its first contactless digital wallet in Germany in May 2025, successfully integrating a product renowned for its online transaction capabilities into physical retail environments.
These unfolding events underline the commercial significance of accessing Apple’s payment technology. While PayPal has yet to disclose plans for a similar wallet in the UK, reports from Global Competition Review suggest the company aims to influence the CMA’s initiatives.
However, the UK’s framework diverges from the EU agreement, as UK-based firms may be obligated to pay for access, unlike the free offering in the EU.
Competition in the realm of digital wallets is already observable in online commerce, where businesses exercise discretion in selecting which payment services to endorse.
These options encompass major retailers, travel platforms, and online casinos accepting PayPal. Conversely, contactless payments necessitate access to technology woven into smartphones, hence the CMA’s focus on modifying NFC access rather than online checkout systems.
Potential Implications of the Proposed Changes
The CMA indicated that should the proposed requirement be enacted, UK firms may offer payment services akin to those available in the EU.
There is also the potential for extending technological applications beyond payments, such as digital identities, travel passes, loyalty programs, and digital keys, although specific products remain unannounced.
Bratby Law recapitulated the consultation, revealing that banks and fintech entities informed the CMA that HCE products already created for Android and EU iPhones could potentially be accessible in the UK within a span of two weeks to three months, while secure element products might require 12 months or longer. It is noteworthy that these timelines represent estimations rather than confirmed launch schedules.
The consultation period will conclude on 17 November 2026, after which the CMA will meticulously evaluate all submissions before arriving at a definitive decision.
According to the preliminary timeline provided by Bratby Law, any enacted requirements are projected to come into effect three months post-decision, with Apple allotted one month to furnish an implementation plan.
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