Why opening the NFC chip is bad news for you

In Europe, iOS will undergo major changes, including opening up the NFC chip to other payment services. That sounds good, but it can also have negative consequences.

NFC chip open: bad news?

The fact that Apple has to open the NFC chip to other payment services pales in comparison to all the other major changes. For example, thanks to new rules from the European Union, we will soon be able to download apps from other stores and finally really use different browsers. But opening the NFC chip will also have practical consequences, and not all of them are positive.

What exactly is going to happen?

If you want to pay contactless with your iPhone, this is now always done via Apple Pay. Other payment services are not allowed to use the NFC chip, which connects to the payment terminal. The European Commission therefore accused Apple of abuse of power a few years ago and the company is facing a huge fine.

From iOS 17.4, the chip will be open to other payment services. This means that in theory you can pay via a payment service such as Google Pay, or directly via your banking app.

Apple Pay Bluetooth

Why is this positive?

This is a positive development, because it offers you as a consumer more freedom. In addition, it removes an extra party that stands between you and payment. Although Apple does not store any data about your payments, the company is still involved in your transactions every time.

It is positive for banks, because they currently only have the option to work via Apple Pay and therefore have a poor negotiating position. They just have to pay what Apple asks or they’re screwed. That position is not desirable for a healthy market. Fortunately, new European legislation is changing that.

Why is it possibly bad news?

Using Apple Pay is currently simple and understandable for everyone. You tap the button on the side of your device twice, look into the camera and you can make contactless payments.

It is not inconceivable that banks will soon decide to no longer support Apple Pay, because they will then owe an amount to Apple for every transaction. The question then is whether paying is just as easy, or whether you first have to open your bank’s app completely before you can pay. There is a good chance that Apple will keep the double-click on the side of the device exclusively for Apple Pay.

It is now also easy to switch between payment services, once they have all been added to Apple Pay. Soon you may have to look up a different app for each service and the question is whether each app has its security in order.

Apple Pay Rabobank

What are the banks going to do?

Looking at Android, several banks have made an attempt to let people pay through their apps. However, the banks soon noticed that this option was not used enough, after which they all started supporting Google Pay.

Of course you can choose to switch banks if your bank decides to no longer support Apple Pay. That idea may prevent banks from making this decision. Only time will tell what changes will soon be implemented at the banks.

More changes in iOS 17.4

From iOS 17.4, much more will change, in addition to the NFC chip opening up. Curious what? We explain all that in this overview.

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