UK regulator wants cheaper iPhone NFC access for Apple Pay rivals

The UK Competition and Markets Authority published a proposed conduct requirement on October 20 that would require Apple to open iPhone NFC more widely to UK developers. It comes under the Digital Markets, Competition and Consumers Act 2024, after the CMA designated Apple as having Strategic Market Status for its mobile platform.

What the CMA proposes

• Apple would have to offer both Secure Element (SE) access and host card emulation (HCE). Today Apple offers only SE in the UK.
• Access would be on fair, reasonable, transparent, and non-discriminatory terms.
• The CMA would not set Apple's price, but it proposes pricing principles it expects to produce "substantially lower" fees than Apple charges now, while still paying Apple for access.

HCE keeps payment credentials off the device and sends one-time tokens to the phone, while SE stores them on a dedicated chip. The CMA says the evidence it reviewed does not suggest either approach is inherently insecure.

Why now

Apple opened its NFC and SE APIs to UK developers with iOS 18.1 in 2024, but that route requires a commercial agreement and fees. The CMA says no company has launched a competing wallet-type product in the UK, while in the EU, where Apple agreed in 2024 to open NFC access for payments, Vipps, PayPal, Klarna, Curve, and BBVA have launched alternatives. The regulator also lists digital IDs, travel passes, and hotel, car, and workplace keys as uses it wants to unlock.

Apple told Reuters it does not believe the CMA should require "an approach with lower privacy and security protections" and that it will "continue to engage constructively."

Who is affected

UK banks, fintechs, and businesses that issue badges or keys should read the 147-page consultation and respond by November 17, 2026. iPhone users do not need to do anything, and Apple Pay keeps working as it does now.

This does not mean a rival tap-to-pay wallet is coming to UK iPhones soon. This is a proposal, and the CMA will decide only after reviewing responses.

Our take: the EU precedent makes it hard for Apple to argue HCE cannot be done safely, so expect a negotiated outcome on fees rather than a flat refusal.

Caveat: Apple's comments come from Reuters, and the final requirement could differ from this draft.

Primary Sources

• CMA: CMA outlines proposals to unlock contactless technology on Apple iPhone
• CMA: Proposed NFC access conduct requirement for Apple's mobile platform
• Apple Newsroom: Developers can soon offer in-app NFC transactions using the Secure Element
• MacRumors: UK Proposes New Ways to Help Apple Pay Rivals
• 9to5Mac: Apple still makes it too hard for Apple Pay competitors to emerge, says UK