UK sets out proposal to open up access to iPhone contactless payments

This regulatory shift could soon change how you accept payments and financing at the point of sale. Currently, Apple restricts the iPhone's NFC chip—the tech that enables tap-to-pay—almost exclusively to Apple Pay. The UK’s Competition and Markets Authority (CMA) is now pushing to open this hardware to third-party developers. For retailers and operators, this means the 'Apple Tax' on mobile transactions could face serious competition. If these proposals go through, alternative digital wallets and Buy Now, Pay Later (BNPL) providers will be able to offer their own seamless tap-to-pay experiences on iPhones. You won't be limited to the terms and fees dictated by Apple Pay. Instead, a customer could use a specialized financing app to tap their phone at your terminal just as easily as they use a credit card today. This lowers the friction for high-ticket financing at the register. It also opens the door for lenders to offer lower processing fees to merchants because they no longer have to pay Apple for access to the hardware. While this is starting in the UK, it follows a similar mandate in the EU, signaling a global trend toward breaking down mobile payment monopolies.

Source: Finextra — Lending

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