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The UK’s competition regulator has set out proposals that could significantly widen access to contactless payments on Apple’s iPhone, potentially lowering barriers for banks, fintechs and wallet providers seeking to compete with Apple Pay.
UK Moves to Open iPhone Contactless Payments
The Competition and Markets Authority is consulting on measures that would require Apple to provide access to both of the main technologies used internationally for contactless services: device-based Secure Element and Host-based Card Emulation.
The intervention follows concerns that Apple’s current fees, technical restrictions and access rules make it difficult for rival providers to launch commercially viable wallet services in the UK.
UK Lags Europe on Alternative Wallets
The contrast with the EU is striking.
After Apple agreed to open NFC access in Europe, providers including Vipps, PayPal, Klarna, Curve and BBVA moved to launch alternative wallet products. In the UK, however, no comparable wallet has yet emerged.
The CMA argues that this reflects not a lack of demand, but barriers to access.
Contactless payments now account for 39% of all UK payments, up from just 3% a decade ago, while more than 60% of adults use a digital wallet. Apple Wallet is currently the most popular.
That gives access to iPhone NFC infrastructure considerable strategic importance.
HCE Access Could Broaden the Market
The CMA’s proposals would require Apple to support both Secure Element and HCE-based approaches.
The regulator says neither technology raises inherent security concerns and that allowing both would give businesses greater flexibility to build services already available elsewhere in Europe.
Apple continues to object to HCE access on privacy and security grounds, arguing that it could weaken protections for users.
The CMA is also targeting commercial terms.
Rather than imposing a fixed price, it proposes principles intended to ensure access fees are substantially lower than Apple’s current charges while still providing fair compensation for use of the technology.
Open Banking Could Benefit Alongside Wallet Competition
The implications extend beyond card wallets.
Improved NFC access could support account-to-account payments, digital identity, travel passes, loyalty services and digital keys.
The Financial Conduct Authority has also argued that broader access could help accelerate open banking by allowing more consumers to make payments directly from their bank accounts through contactless interfaces.
That could be particularly significant for UK fintechs seeking to compete with card-based wallets using alternative payment rails.
The consultation closes on 17 November 2026, with a final decision expected after responses have been assessed.
If adopted, the measures could shift control of iPhone contactless payments away from a single platform model and towards a more open ecosystem in which banks, fintechs and payment providers compete directly for the customer interface.
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