EU approves Apple’s commitments on NFC payment technology

The European Commission has announced plans to approve Apple’s commitment to make its tap-and-go mobile payment system available to third parties.

Following reports in April 2024 that Apple had made public its offer to provide a tap-and-go mobile payment system, the European Commission has accepted commitments from the company on how it will operate Apple Pay, ending a competition investigation that began in 2022. The move also allowed Apple to avoid potential fines over accusations that it broke competition law by blocking participants from accessing its technology.

In 2022, the European Union accused Apple of restricting access to NFC payment technology, and the company received a “Statement of Objection” on suspicion of anti-competitive activities. This happened because Apple imposed restrictions on third-party developers accessing NFC input, making it available only through Apple Pay on iOS devices.

What has Apple committed to doing?

With a July 25, 2024 deadline, Apple is set to implement several modifications that will allow makers of competing mobile wallets to offer contactless payments using NFC technology for free and without using Apple Pay or Apple Wallet. Other commitments include:

Enables NFC access in Host Card Emulation (HCE) mode, ensuring secure storage of payment and transaction credentials;

Allows users to set HCE payment apps as the default for in-store payments and use features such as Field Detect, Double-Click, Touch ID, Face ID, and passcode authentication;

Procedures for reviewing Apple’s decisions to limit access.

In addition, all of Apple’s commitments are to apply to all third-party mobile app developers and iOS users located in the European Economic Area (EEA), as well as when traveling outside the region. The commitments are intended to ensure that the standardized NFC technology used for contactless payments can be used by competitors in Apple devices throughout the EU, Iceland, Liechtenstein, and Norway. After receiving feedback from the financial industry, Apple has modified its previous commitments to include, among other things, removing the requirement for developers to have a PSP license to access NFC inputs and shortening the timelines for resolving disputes.

In addition, Apple emphasized that the company plans to provide developers across the EEA with NFC contactless payment options for several use cases, including car keys, corporate IDs, hotel keys, and concert tickets. European Commission officials emphasized that the regulator had previously tested the package and received feedback on whether the commitments could solve the current issues. After asking Apple to improve the commitments, the regulator approved them and made them binding on the company.