In accordance with the Digital Markets Act, Apple is opening up the NFC chip on the iPhone for the first time. Users in the EU have been able to use Apple Pay alternatives since iOS 17.4.
This would allow other payment services and wallets to be used instead of Apple Pay. Consider Google Pay. A banking app could also immediately build in the option to link their payment card to Apple’s NFC chip.
NFC chip iPhone opened up
Since iOS 17.4, developers can use the NFC chip in the iPhone to connect other payment services to it. Not every app builder can use the chip.
Developers of banking and wallet apps can apply to Apple for permission to support these features. To get approved, developers will have to meet various industry and regulatory requirements.
Once the service is approved, a participating third-party banking or wallet app can initiate NFC transactions from their app, start automatically when the user places their phone on an NFC terminal, and have the payment card appear when the user taps the side button or home button.
As soon as you use another payment service, the references to Apple Pay are hidden.
Mandatory in the EU
Opening up the NFC chip in the iPhone did not just come out of the blue, it will become mandatory in the EU. The Digital Markets Act (DMA) states that “gatekeeper” companies must open their services and platforms to other companies and developers.
For example, since March 2024, Apple has also allowed sideloading of apps and alternative App Stores, as well as opening up the NFC chip of the iPhone. This allows developers to link alternative payment methods to the chip instead of Apple Pay.