Apple lawsuit becomes class action

A major lawsuit against Apple has been granted class-action status, which could fundamentally change how mobile wallets and contactless payments work in the U.S. The lawsuit, led by card issuers like Affirm’s Credit Union and others, alleges that Apple holds an illegal monopoly by forcing banks to pay fees for Apple Pay transactions while blocking third-party wallets from accessing the iPhone’s NFC chip. For retailers and merchants, this case is critical because it challenges the cost structure of mobile payments. Currently, Apple charges card issuers a fee for every transaction made via Apple Pay, a cost that indirectly impacts the entire payment ecosystem. If Apple loses or is forced to open up its hardware, we could see a surge in competing mobile wallets from banks or tech companies. This would likely lead to lower transaction costs for merchants and more variety in how customers choose to pay at the point of sale. The shift could also allow more flexible financing options to be integrated directly into a wider variety of digital wallets, rather than being restricted to the Apple ecosystem.

Source: Payments Dive

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