British regulator moves to open Apple contactless payments to rivals

Britain's competition regulator announced plans on Tuesday to loosen Apple's control over contactless payments. The Competition and Markets Authority wants the company to lower fees and remove technical barriers so rival payment services can compete with Apple Pay.

Market Impact

The regulator stated that these proposals will bring much lower access fees and make it easier for digital banks and other companies to use Apple's contactless technology. The measures are milder than the rules the European Union put in place in 2024, which forced third-party wallet developers to get free access. Since the EU action, companies like Vipps, PayPal, Klarna, Curve and BBVA have launched other payment apps. CMA Chief Executive Sarah Cardell said the plan will spark more innovation and choice while helping Britain's fintech sector grow. She noted that high fees, strict rules and technical blocks have made it too hard for rival firms to compete.

Company Response

Apple defended its system by stating it already lets developers offer contactless payments through NFC and its secure element. The company explained that this setup lets developers build transit passes, event tickets and in-store payments while keeping user data safe. An Apple spokesperson said the firm does not believe the regulator should force an approach with lower privacy and security protections, and added that the company will keep working with officials.

Context

Contactless payments have grown very fast and now make up thirty-nine percent of all payments in Britain, compared to just three percent ten years ago. More than sixty percent of adults use a digital wallet, with Apple Wallet standing out as the most popular option in the country. The regulator is taking feedback on the proposals until November 17 before making a final choice.