PayPal and Revolut are preparing responses to a UK competition consultation that could reshape access to Apple Inc.’s contactless payment technology, as regulators consider measures designed to give rival digital wallets a stronger foothold in the British market.
The companies are seeking to influence proposals from the Competition and Markets Authority, according to an Oct. 23 report by Global Competition Review. The initiative could require Apple to provide broader access to the technology powering contactless transactions on iPhones, potentially creating new opportunities for financial technology companies.
The CMA outlined its proposals on Oct. 20, citing concerns that Apple’s existing fees, contractual conditions and technical restrictions could discourage competition and limit innovation in mobile payments.
Under the proposed framework, Apple would have to support two widely used methods for contactless transactions: secure element technology, which stores sensitive information on a device, and host card emulation, which allows applications to support transactions using data stored outside the device.
The regulator also wants access charges to fall significantly, although it has stopped short of proposing fixed prices. Instead, it is considering principles intended to ensure that fees are fair, transparent and commercially viable for competing developers.
Fintech Companies See Opening in Apple’s Ecosystem
The regulatory review comes as digital payment providers seek greater control over how customers use their services on smartphones.
Revolut has publicly supported the CMA’s direction, arguing that wider access to near-field communication technology could allow financial technology companies to compete more effectively with established technology platforms.
David Tirado, Revolut’s chief commercial officer, described access to the infrastructure as essential to improving competition, according to Reuters reporting published Oct. 20. He said the regulator’s proposals could help British fintech companies compete on more equal terms with major technology businesses.
PayPal is also preparing to engage with the consultation, according to Global Competition Review. The company’s participation is particularly significant because it has already entered the market for alternative contactless payment applications in the European Union, where regulatory intervention has required Apple to provide competing wallet developers with access to its technology.
The UK proposals could enable companies to introduce payment services that operate independently of Apple Pay while still using the iPhone’s contactless capabilities.
Britain Looks to European Precedent
The CMA’s initiative follows regulatory changes in the European Union, where Apple agreed in 2024 to allow third-party payment applications to use host card emulation technology.
Those changes helped pave the way for alternative payment applications from companies including Vipps, PayPal, Klarna, Curve and BBVA, according to the CMA.
Britain has yet to see a comparable competitor to Apple Wallet emerge under its existing access arrangements, the regulator said.
The UK approach differs from the European framework in an important respect. While the EU arrangements provide qualifying developers with free access to the relevant contactless functionality, British regulators are considering a system that would permit Apple to charge fees subject to appropriate safeguards.
The distinction could become a central issue in consultation responses, as developers weigh the commercial benefits of broader access against the potential costs of building and operating competing services.
Related: PayPal Ends Federal Antitrust Challenge to Merchant Payment Rules
Apple Raises Security Concerns
Apple has defended its existing arrangements, maintaining that developers can already offer contactless services through its NFC and secure element infrastructure.
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The company argues that its technology supports transactions and other applications, including transportation passes and event tickets, while protecting sensitive customer information.
In comments reported by Reuters, Apple opposed requiring technical arrangements that it believes would offer weaker privacy and security protections. The company said it would continue engaging with British regulators over the proposals.
The CMA, however, has indicated that the evidence it has reviewed does not suggest either of the two established contactless technology standards presents inherent security concerns.
That assessment could strengthen the regulator’s case for requiring Apple to support both systems, rather than limiting developers to its existing secure element-based approach.
Growing Market Raises Stakes
The dispute concerns a rapidly expanding part of Britain’s payments infrastructure.
Contactless transactions accounted for 39% of all UK payments in 2025, compared with approximately 3% a decade earlier, according to figures cited by the CMA. More than 60% of British adults use a digital wallet, with Apple Wallet the most popular option.
The regulator also estimates that Britain’s fintech industry generates roughly £214 billion ($285 billion at an illustrative exchange rate) in annual turnover and supports more than 360,000 jobs.
Greater access to iPhone technology could support services beyond conventional card payments, including direct bank-account transfers, digital identification, travel passes and electronic access credentials.
The proposals form part of Britain’s broader digital competition framework, under which Apple has been designated as having strategic market status in mobile platforms. That designation gives the CMA authority to consider targeted conduct requirements intended to address competition concerns.
November Deadline Looms
The CMA is accepting responses to its consultation until Nov. 17, 2026, after which it will assess submissions before deciding whether to impose final requirements.
The regulator has invited feedback on both the proposed obligations and its assessment of their effectiveness and proportionality. It also expects to publish nonconfidential versions of responses submitted by interested parties.
Source: Global Competition Review
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