UK Regulator Pushes Apple to Open iPhone Payment Technology to Rivals

The UK’s competition watchdog wants Apple to give rival payment providers wider access to iPhone contactless technology and charge substantially lower fees, potentially opening the door to new digital wallets, travel passes and payment services.

The UK is taking another step towards challenging Apple’s control over contactless payments on the iPhone. The Competition and Markets Authority (CMA) has proposed measures that would make it easier for fintech companies and other developers to build services using the device’s contactless technology.

Published on 20 October 2026, the proposals address two barriers identified by the regulator: technical restrictions on access to Apple’s near-field communication (NFC) technology and fees that the CMA believes make it difficult for competing businesses to develop commercially viable products.

The issue matters because contactless payments have become a routine part of British life. According to the CMA, they accounted for 39% of UK payments in 2025, up from just 3% a decade earlier. More than 60% of adults use a digital wallet, with Apple Wallet the country’s most popular option.

Yet the regulator says no rival has launched a wallet-type product to compete with Apple’s on iPhones in the UK. It believes wider access could give financial technology companies more room to compete and give consumers greater choice.

The proposals remain under consultation. Apple has defended its existing approach, arguing that its current arrangements allow developers to offer contactless services securely while protecting sensitive user information.

Why the CMA Wants Apple to Open Up Contactless Payments

NFC is the short-range wireless technology that allows a smartphone to communicate with a compatible payment terminal when the devices are brought close together. It also supports other services, including access credentials and digital keys.

On the iPhone, Apple controls how third-party developers access the technology. The CMA argues that the current arrangements, including fees and technical restrictions, can make it harder for rival businesses to launch products that compete with Apple Wallet.

For a fintech company, developing a useful payment app is only part of the challenge. It must also be able to access the technology needed to make that app work at a checkout, on public transport or at another contactless point.

If access is too expensive or technically restrictive, a promising product may struggle to reach customers even when there is demand for an alternative.

The CMA wants Apple to provide access through the main contactless technology standards used internationally. It also expects its proposed approach to result in substantially lower fees, although it is not proposing to set a specific price for access.

The regulator’s position is that technical access must be commercially viable. Simply allowing developers to use a technology will not create meaningful competition if the associated costs and terms make it impractical to build a sustainable business.

What Would Change for Fintech Companies?

A central part of the proposal is access to host card emulation (HCE), a technology that can enable contactless payment functionality without relying exclusively on an on-device secure element.

Apple currently offers access to its secure element technology in the UK but does not permit the HCE approach that the CMA wants made available. Under the proposals, developers would have access to both standards.

The distinction is technical, but its commercial implications could be significant. Giving developers more choice over how their apps use contactless technology could make it easier to bring payment services to iPhones and adapt products for different markets.

The CMA points to several potential use cases:

• Alternative digital wallets: Banks and fintech companies could develop services that compete more directly with Apple Wallet.
• Account-to-account payments: Providers could explore new ways for consumers to pay directly from their bank accounts.
• Digital identity: Developers could build services involving digital IDs and age verification.
• Travel and ticketing: Transport providers could develop new travel passes and ticketing experiences.
• Digital keys: Businesses could create services for accessing cars, hotels and workplaces.

These are potential opportunities rather than products guaranteed to launch if the proposals are adopted. Their commercial success would still depend on customer demand, integration with existing systems, security requirements and the business models developers can build around the technology.

Europe Provides an Early Test Case

The UK is not the first market where regulators have pushed Apple to widen access to its contactless technology.

In the European Union, regulatory changes led Apple to provide NFC access to third-party developers under specified conditions. The CMA says alternative payment apps subsequently launched, including services from Vipps, PayPal, Klarna, Curve, and BBVA.

The UK watchdog sees this as evidence that opening access can create opportunities for new products. It contrasts that experience with the UK market, where it says no competing wallet-type product has launched on the iPhone.

Apple takes a different view. The company has argued that rival apps could have launched before the European changes and that its existing arrangements already support innovation while maintaining strong privacy and security protections.

The debate is therefore not simply about whether developers can build payment apps. It is about whether the technical and commercial terms for accessing the iPhone’s contactless capabilities allow genuine competition.

The UK is also pursuing its own regulatory approach rather than simply copying the EU framework. The CMA says its proposals focus on access to specific technologies and commercially workable terms.

Apple Raises Security and Privacy Concerns

Apple argues that opening access must not weaken the protections users expect when making payments or storing sensitive information on their devices.

Its position is that the existing system has enabled developers and banks to offer contactless transactions, transit passes, event tickets and other services while protecting user data.

The CMA, however, says the evidence it has reviewed does not indicate that either of the two main contactless standards inherently raises security concerns. It believes access to both could support a wider range of use cases.

That disagreement will be central to the consultation. Contactless payment systems need robust safeguards because they handle payment credentials and interact with physical payment terminals. Any changes must address how access is granted, how sensitive information is protected and how responsibility is managed when something goes wrong.

Greater competition and strong security are not necessarily incompatible. But the final framework will need to establish how developers can gain meaningful access without compromising the protections relied on by consumers and businesses.

The CMA has not proposed simply removing every restriction. Instead, it wants access arrangements that support competition while allowing Apple to be fairly compensated for providing access.

Why Lower Fees Matter

The proposed fee changes could prove just as important as the technical changes.

Developers need to assess whether a product can attract enough users and generate enough revenue to cover its operating costs. If access to essential contactless technology carries fees or terms that make the economics unattractive, a company may decide not to launch at all.

The CMA says it is not planning to dictate the exact prices or terms Apple can charge. Instead, it is proposing principles intended to make access commercially viable, with fees expected to be substantially lower than current charges.

For the fintech sector, that could create room for more competition in digital wallets and related services. It may also help UK businesses develop products that can be expanded into other markets, particularly where similar technology standards are available.

The regulator estimates that the UK fintech sector generates around £214 billion in turnover and supports more than 360,000 jobs. It argues that better access to contactless technology could help this established industry develop new services and business models.

However, lower fees alone will not guarantee successful challengers. New providers must still win customer trust, establish relationships with banks and merchants, and deliver products that offer a clear advantage over existing options.

What Happens Next?

The CMA has opened a public consultation on its proposed access requirement under the UK’s Digital Markets, Competition and Consumers Act 2024. The consultation closes on 17 November 2026. The regulator will consider responses before deciding what requirements, if any, should follow.

Until then, the proposals do not mean UK iPhone users can immediately switch to a new contactless wallet or that developers have already received broader access.

The outcome will matter to banks, payment providers, fintech startups and businesses exploring digital identity, ticketing and access technology. It could also shape how Apple’s mobile ecosystem evolves in the UK as regulators seek to balance competition, innovation and security.

TheFinRate Analysis: A Potential Opening for UK Fintech

The CMA’s proposal targets a crucial point in digital payments: control over the technology that allows a smartphone to interact with the physical world.

For consumers, wider access could eventually mean more choice over how they pay, travel or store digital credentials. For fintech businesses, it could reduce barriers to launching products on one of the UK’s most widely used smartphone platforms.

But the result will depend on the final rules and the commercial terms developers receive. Access that remains too expensive or difficult to implement may not lead to meaningful competition, while poorly designed requirements could create legitimate security and operational concerns.

The European experience offers an indication of what may be possible, but the UK market will have its own commercial and regulatory conditions.

The key question is whether the CMA can turn technical access into real competition. If its proposals lead to workable fees and reliable access, UK fintech companies may gain new opportunities to challenge established digital wallets and build services beyond payments. For now, the market is waiting for the consultation to determine what changes will actually follow.

Source: UK asks Apple to widen access to its payment tech

Apple contactless paymentsApple NFC accessApple WalletCompetition and Markets Authoritycontactless paymentsdigital paymentsDigital Walletsfintech regulationHCE paymentsHost Card EmulationMobile paymentsPayment Innovationpayment technologyTheFinRateUK CMAUK competition regulationUK fintech