EU to approve Apple’s iPhone NFC chip policy changes

The European Commission is poised to approve Apple’s previously-announced policy adjustments concerning access to the NFC chip on the iPhone. The primary goal is to foster competition in the contactless payments market. The official announcement of the commission’s decision is expected in the upcoming weeks, as reported by Reuters1.

Under these new changes, apps will gain the ability to serve as the default wallet app when users double-click the side button or hold their phone near a payment terminal. However, it’s important to note that this policy relaxation applies exclusively to apps within the European Union, not globally.

Until now, Apple has maintained strict control over access to the NFC contactless chip on iPhones, citing reasons related to user experience, privacy, and security. Consequently, Apple Pay has dominated as the de facto contactless payment solution on iPhones, effectively leaving no room for competition.

From the user’s perspective, this means they can now download alternative apps and designate them as their preferred contactless payment app. These apps will be able to replace system features typically associated with Apple Pay, such as near-field activation and double-click functionality.

However, it won’t be a completely unrestricted environment. App developers seeking these privileges must request an entitlement from Apple, adhering to industry standards and holding appropriate licenses for consumer payments1. This measured approach aims to strike a balance between openness and security.