Apple has confirmed it plans to open up the iPhone’s NFC chip and contactless payment platform to banks in the EU to develop their own Apple Pay rivals. The company delved into its plans in a new statement given to Reuters.
With this decision, Apple hopes to skirt hefty fines from the European Union over monopolistic and anticompetitive accusations of limiting fintech competition on the iPhone. The European Commission has also confirmed that it is seeking feedback from banks that would benefit from Apple’s anticipated decree. If approved, the Cupertino company would settle one of its open antitrust cases in Europe that span avenues other than Apple Pay and contactless payments.
We have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet.
Apple statement to Reuters
Under the proposal, developers of payment, banking, and digital wallet applications within the European Economic Area (EEA) will have the opportunity to integrate with Apple’s payment ecosystem. Apple says that this option will be available alongside Apple Pay, allowing consumers to choose between using Apple’s service or another NFC-enabled application on iPhone provided by their bank or card issuer for contactless transactions.
The commitments also encompass added functionalities like defaulting to preferred payment apps and access to authentication features like Face ID. Apple Pay competitors, including banks who would benefit from the initiative, will have to provide feedback to the Commission within one month of it releasing a summary.
Apple Pay is supported by over 2,500 banks in Europe, which means that the potential for a contactless payment system that rivals Apple’s is huge in the continent.
Apple Pay first launched in 2014 on the iPhone 6 and iPhone 6 Plus before expanding to the Apple Watch, iPad, and Mac. In addition to NFC contactless payments, Apple Pay can also be used for web and in-app purchases, which are authenticated with Touch ID or Face ID.
