Apple Inc. faces fresh regulatory pressure in Britain after the country’s competition watchdog proposed new rules Tuesday that would make it easier for rival financial technology companies to offer contactless payment services on iPhones.
The Competition and Markets Authority said Apple should reduce the fees charged to third-party developers and expand access to the technology that powers Apple Pay, potentially opening the door to competing digital wallets and other mobile services.
The proposals represent another challenge to Apple’s control over its mobile ecosystem, according to Bloomberg’s Oct. 20 report on the British regulatory initiative.
The regulator argues that Apple’s existing commercial terms and technical restrictions make it difficult for financial technology companies to develop services that can compete effectively with Apple’s own products.
Under the proposed changes, Apple would be required to provide developers with access to two established methods of near-field communication, or NFC, the technology that enables smartphones to exchange information with payment terminals and other contactless devices.
Apple currently provides British developers with access through its secure element system, which stores sensitive information on the device. The CMA wants the company to also support host card emulation, an alternative technology already available to developers in the European Union.
The proposed framework would also introduce pricing principles intended to significantly reduce the cost of accessing Apple’s contactless technology, according to the CMA’s official announcement.
UK Seeks Greater Competition in Digital Payments
The regulatory initiative comes as contactless payments become increasingly important to Britain’s financial services industry.
Contactless transactions accounted for 39% of payments in the UK in 2025, compared with just 3% a decade earlier, according to figures cited by the CMA. More than 60% of British adults use digital wallets, with Apple Wallet the most widely used service.
Despite that growth, no competing wallet-type product has launched in Britain under Apple’s existing NFC access arrangements, the regulator said.
The situation differs from the European Union, where regulatory intervention in 2024 led Apple to provide third-party developers with free access to its contactless payment technology under specified conditions.
That change helped companies including PayPal, Klarna, Curve and BBVA introduce alternative payment services, according to the CMA.
British regulators believe similar improvements in market access could encourage domestic financial technology businesses to develop new products and expand their operations.
CMA Chief Executive Sarah Cardell said the proposed measures could increase consumer choice while supporting innovation and economic growth.
The regulator has received complaints that Apple’s fees, contractual conditions and technical limitations discourage businesses from entering the market, Cardell said in the agency’s Oct. 20 statement.
Read more: Apple Seeks to Overturn Record $5.7 Billion Patent Verdict
The potential benefits extend beyond retail payments. The CMA said expanded access could support digital identification services, transport tickets, loyalty programs and electronic keys for vehicles, hotels and workplaces.
Apple Raises Security Concerns
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Apple has defended its existing approach, arguing that its contactless payment architecture provides important privacy and security protections.
The company said developers can already use its NFC technology and secure element to create services for payments, transit and ticketing, according to Reuters’ reporting Tuesday.
Apple also warned that requiring a different technical approach could weaken protections for sensitive user information.
The company’s position highlights a central disagreement between regulators seeking greater competition and Apple, which maintains that controlling access to certain iPhone technologies helps protect customers.
The CMA, however, said the evidence it reviewed did not identify inherent security concerns with either of the two established NFC technologies covered by its proposals.
Financial technology companies have broadly supported efforts to expand access.
Revolut, the British digital banking company, welcomed the regulator’s initiative, saying access through host card emulation could help financial technology businesses compete more effectively with major technology platforms, Reuters reported.
Broader Regulatory Scrutiny
The latest proposals follow Britain’s decision to designate Apple and Alphabet Inc.’s Google as companies with strategic market status in their respective mobile ecosystems under the country’s digital competition framework.
That designation gives the CMA additional authority to impose targeted requirements intended to address barriers to competition.
The British initiative also reflects a broader international effort to examine the commercial and technical restrictions imposed by dominant mobile platform operators.
While the European Union has already secured changes to Apple’s contactless payment arrangements, Britain’s proposals would establish a separate regulatory framework focused on access conditions and commercially viable pricing.
The CMA has not yet made a final decision.
Source: Bloomberg
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