- European Commission is set to approve Apple's opening of iPhone NFC for third-party mobile wallets in May, allowing users to use services like Google Pay and Samsung Pay alongside Apple Pay.
- This move comes as part of the EU's broader effort to regulate tech giants and promote open ecosystems, following Apple's €1.84 billion fine for antitrust violations related to its App Store.
- The change promises European iPhone users more choices and competitive options for mobile payments, potentially leading to improved features, enhanced security, and better pricing.
In an extraordinary step, the European Commission (EC) is likely to authorize Apple’s decision to allow its NFC functions to be used by other companies operating mobile wallets. This evolution will offer European users of iPhones the ability to perform tap-to-pay transactions using various mobile wallet services including Google Pay and Samsung Pay which will mark a departure from Apple’s earlier exclusive relationship with Apple Pay.
European Commission to Approve Apple’s Opening Up of iPhone Tap-to-Pay to Third Parties in May
Why This Change Is Happening?
EU Commission has decided on a number of its audits of Apple’s business practices. It was the European Digital Markets Act (DMA) that had just been passed that already made changes to its App Stores like allowing for other app stores and different in-app payment methods. Now, the emphasis is on Apple’s NFC tap-to-pay system which has been a keepsake in the walled garden approach that restrains users from Apple Pay.
A possibility that Apple has in mind by making its NFC system available to everyone is to clear the growing antitrust accusations. The tech giant got a €1.84 billion fine last month for being suspected of cutting the competitors out by partnering only with its App Store. It seems that Apple intends to ward off any further regulatory movements by showing readiness to crack the wall of its ecosystem.
What Does This Imply for European iPhone Users?
The recent amendment of the regulation aims to provide the users of iPhones in Europe with some options and freedom when making mobile payments. Though Apple Pay has been the dominant player for contactless payments on iPhones so far, the opening up of NFC technology would lead to a broader range of wallet options in the mobile payment ecosystem.
This intensified competition, however, may very well benefit the consumers in several aspects. Along with more mobile wallet providers, users will be able to take advantage of upgraded features, advanced security features, and likely even more attractively priced options.
EU’s Viewpoint on Open Ecosystems
The European Commission’s actions against Apple constitute a wider global trend that aims at regulating big techs and creating fair open platforms. Certain brands, e.g., Apple, are being pressured with criticism about their closed systems which limit user choice and innovation.
By obliging Apple to unlock the NFC technology for third-party mobile wallets, the EU jurisprudence conveys a distinct message, that with regard to competition and consumer choice in electronic commerce, is paramount.
What to Expect Next?
Although precise details of what Apple is proposing are still confidential, experts expect the technology to be rolled out in May anyway. This will mostly affect the iOS OS upgrade and also could be an important aspect that will enhance third-party wallet apps to have an all-round Apple NFC chip.
It is not sure till now, whether this change will cut off Apple Pay’s leading position or provide an opportunity for the new mobile wallet solutions. However, one thing is certain: European iPhone users need less time now to consolidate their mobile payment freedom, which is an excellent sign of a more open and competitive digital market.
