Apple is starting with iOS 18.1, developers will gain access to its near-field communication (NFC) technology, allowing them to integrate contactless transactions directly into their apps. This move marks a significant shift from the company’s previous policy of restricting NFC usage to Apple Pay and Apple Wallet.
The new NFC and Secure Element (SE) APIs will enable developers to offer a range of in-app contactless features. These include payments for in-store transactions, digital car keys, closed-loop transit systems, corporate badges, student IDs, home and hotel keys, merchant loyalty and rewards cards, and event tickets. Support for government IDs will be introduced in the future.
This decision follows an agreement between Apple and the European Commission (EC), which had previously charged Apple with antitrust violations in 2022 for allegedly blocking competitors from accessing its NFC technology. To avoid penalties, Apple committed to opening up its payments technology to third parties.
Enhancing competition
The agreement is expected to enhance competition in the mobile payments sector, allowing rival companies to develop alternative solutions that can compete with Apple Pay. This change is anticipated to provide consumers with a broader selection of secure and innovative mobile wallets.
The move comes amid broader scrutiny of NFC technology in the United States, with recent reports highlighting the potential benefits of increased access. According to these reports, expanding NFC access could drive innovation and lead to the development of new features and services by various providers, including banks and retailers.
In related developments, the growth of contactless payments has been underscored by major events such as the Paris Olympics, which demonstrated the potential of digital payments technology to handle large-scale transactions efficiently. The games highlighted how such technology can set trends and influence the broader payments landscape.
With this new access, Apple aims to encourage further innovation in the mobile payments space and offer developers and consumers more flexible options for contactless transactions.
