Apple bows to EU regulatory pressure and opens up Apple Pay

Under intense pressure from the EU regulator and facing the potential of a hefty fine, Apple has agreed to let third-party mobile wallet and payment services in Europe use free access to Apple Pay in a move to allay competition concerns.

Apple opens up Apple Pay

The tech giant said that it would allow other companies’ apps to make contactless payments on iPhones and other devices that use its iOS operating system for free, without the need to use Apple Pay or Apple Wallet.

Banks and other potential rivals argued it’s unfair they’re forced to use software controlled by the tech giant.

Under the deal brokered by the European Commission, Apple would let alternative providers access the NFC chip on the iPhone – and could face a hefty fine of 10% of worldwide turnover if it doesn’t comply.

The EU executive is now seeking views on whether those plans would help boost competition after it tentatively found Apple was unfairly restricting access to its technology back in 2022.

“Through our ongoing discussions with the European Commission, we have offered commitments to provide third-party developers in the European Economic Area with an option that will enable their users to make NFC contactless payments from within their iOS apps, separate from Apple Pay and Apple Wallet,” Apple said.

“Apple Pay will continue to be a broadly available option.”

The spokesperson continued by saying its existing software won’t change, but there’ll also be room for other payments, banking and digital wallet app developers to get involved, iPhone users will be able to opt for any of the alternatives.

A representative of the lobby group the European Digital Payments Industry Alliance, a Brussels lobby group representing the likes of Nexi and Worldline, said it welcomed the announcement.

“Fair access to NFC technology can accelerate the digitalisation of payments in Europe and increase the uptake of instant payments, which would deliver savings for merchants and consumers,” they said.

EU antitrust authorities have in recent years imposed record sanctions on big tech players deemed to favour their own products – and have also introduced special legislation, the Digital Markets Act, to control the power of major internet services that act as gatekeepers.

Two fines of €2.4 billion and €4.3 billion imposed on Google are currently being considered by the EU’s top court.