Apple Opens Up Its Ecosystem in the EU, Allows Third-Party Contactless Payment Apps

Apple is taking steps to allow more competition in its ecosystem in the European Union. Recently, a third-party app store became available, and now it seems that Apple is preparing to open up its mobile wallet as well. The EU is likely to approve Apple’s policy changes regarding access to the NFC chip on the iPhone, which would enable more competition in the contactless payments market. An official announcement from the EU Commission is expected in the coming weeks.

These changes would allow third-party apps to become the default wallet app when users double-click the side button on their iPhone and hold it near a payment terminal. Apple’s near-field communication (NFC) technology enables contactless payments through mobile wallets. Up until now, Apple has restricted access to the NFC chip on the iPhone, citing concerns over user experience, privacy, and security, making Apple Pay the dominant contactless payment option.

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 using its tap-and-go technology. By changing its policies, Apple hopes to avoid being found guilty of wrongdoing and facing potential fines of up to 10% of its global annual turnover. With a recent hefty fine for antitrust violations related to its App Store, Apple is likely eager to prevent any further penalties.

Alternative contactless payment apps will be allowed on the iPhone, but developers will need to request entitlement from Apple and adhere to industry standards and licensing requirements for handling consumer payments. This move aims to increase competition in the market and provide users with more choice when it comes to making contactless payments.