Apple has taken a step towards opening up its ecosystem to competitors in the European Union with the first third-party app store officially launching last week. Now, it seems that Apple is set to open up its mobile wallet as well. According to Reuters, the EU Commission is close to approving Apple’s policy changes regarding access to the NFC chip on the iPhone, which will allow for competition in the contactless payments market. With these changes, third-party apps can become the default wallet app that appears when users double-click the side button and hold their phone near a payment terminal.
Up until now, Apple has tightly controlled access to the NFC chip on the iPhone due to concerns about user experience, privacy, and security. This has made Apple Pay the dominant contactless payment option on the iPhone, with little competition. However, two years ago, the European Commission accused Apple of stifling competition for its Apple Pay mobile wallet by blocking rival mobile wallet app developers from accessing tap-and-go technology. By changing its policies, Apple hopes to avoid being found in violation and facing a significant fine.
Following a recent €1.84 billion fine for hindering competition in the App Store, Apple is likely keen to avoid further fines. While alternative contactless payment apps will be allowed on the iPhone, developers will have to request entitlement from Apple and adhere to industry standards and licensing requirements to handle consumer payments.
