The UK's competition regulator wants Apple to open up the iPhone's contactless payment technology to rival wallet apps on cheaper and more flexible terms.
On October 20, the Competition and Markets Authority (CMA) published a consultation on a proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024. The rule would follow Apple's Strategic Market Status designation in the UK and is aimed at making it easier for fintechs and other challengers to compete with Apple Wallet.
What the CMA is proposing
Two changes sit at the centre of the plan. First, Apple would have to support both of the main international standards for contactless payments: secure element (SE) access and host card emulation (HCE). According to the CMA, Apple currently offers only the secure element route in the UK. The secure element is a dedicated chip that stores sensitive payment data, while HCE lets a payment app work without it.
Second, the regulator wants access charges to follow principles it has set out, rather than the CMA setting a price itself. It says it expects the resulting fees to be substantially lower than what Apple charges now, while still compensating Apple fairly.
Why the regulator is acting
The CMA argues that high fees, strict terms and technical limits make it hard for UK businesses to launch rivals to Apple Wallet. Apple has let UK developers use the iPhone's NFC chip since 2024, but they must sign an agreement, pay fees and rely on the secure element. MacRumors, which cited Reuters, noted that Apple offers HCE access free of charge in the EU under commitments made in 2024, and that rival payment apps have launched there. No wallet-style competitor has appeared in the UK under Apple's current terms, the CMA says.
CMA chief executive Sarah Cardell said the proposals could boost innovation, choice and growth, particularly in fintech. David Geale of the Financial Conduct Authority welcomed the steps, saying lower fees and better access could increase competition and support open banking payments.
Apple's position
The CMA's press release does not include a statement from Apple. According to MacRumors, Apple said developers can already offer contactless services using its technology, argued that regulators should not require an approach with weaker privacy and security protections, and said it will keep engaging constructively. The CMA said its evidence does not suggest that either approach is inherently insecure.
What happens next
The consultation is open until November 17, 2026. The CMA will decide on a final conduct requirement after reviewing the responses, so the proposals could still change before they take effect.
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