Apple will allow third-parties in the EU access to the iPhone NFC chip

Posted:
in iPhone

Apple has announced plans to open up its onboard iPhone NFC technology to third-party mobile payment providers, allowing them to offer their services across the EU.

Apple's iPhone NFC to open to third-party devs post EU probe
Apple's iPhone NFC to open to third-party devs post EU probe



Since the launch of Apple Pay in 2015, Apple has barred third-party payment systems from using its near-field communication (NFC) technology for contactless payments. Now, the company plans to change that -- at least in the European Union.

While it was first rumored that Apple would open access in December, the company has now gone on record saying it will open access in the EU.

"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 told the Wall Street Journal.

As The Verge points out, there's no reason to believe that Apple has any plans of opening the technology outside of the EU at this time.

Apple would be obligated to allow access for ten years and would be liable for fines of up to 10% of its worldwide annual turnover if it chose not to honor them.

In May, EU regulators had ramped up an investigation into Apple over its practice of restricting third-party access to its onboard NFC technology.

The European Commission has accused Apple of engaging in anticompetitive behavior since the launch of Apple Pay in 2015. The commission is concerned that Apple's restriction of the iPhone's built-in NFC chip to Apple Pay is preventing third-party companies from entering the mobile payment market.

In 2019, EU investigators asked payment companies for feedback on Apple Pay. They were concerned that Apple's decision to limit the iPhone's NFC chip to only work with Apple Pay could prevent other companies from entering the mobile payment market.

Several governmental agencies have criticized Apple for restricting access to NFC technology on their devices. Australian banks were among the first to take issue with Apple Pay shortly after its release. They attempted to boycott the service to negotiate access to the NFC hardware within Apple devices for third-party use.

However, the banks eventually backed down after the Australian Competition and Consumer Commission denied the boycott request in 2017.




Read on AppleInsider

«1

Comments

  • Reply 1 of 25
    That's really cool – I hope it will be possible worldwide soon !
    avon b7williamlondon
  • Reply 2 of 25
    omasouomasou Posts: 592member
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    edited January 19 watto_cobra
  • Reply 3 of 25
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 
    edited January 19 gatorguy
  • Reply 4 of 25
    IreneWIreneW Posts: 303member
    About time.
    williamlondondamn_its_hot
  • Reply 5 of 25
    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    williamlondonwatto_cobra
  • Reply 6 of 25
    avon b7avon b7 Posts: 7,753member
    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    Because users get choice. It also allows for competition. 

    On my phone, I choose which system to use and that is the default. 

    Now I hope that non-payment options become available like NFC for transport validation. 


    appleinsideruserctt_zhsphericdamn_its_hot
  • Reply 7 of 25
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    beowulfschmidtwatto_cobra
  • Reply 8 of 25
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    Samsung doesn't charge a license / fee for using its NFC chip. Google doesn't charge a license / fee for using its NFC chip. It would be very odd for only Apple to charge for using its NFC chip, something that should've been open from day one...  
    williamlondon
  • Reply 9 of 25
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    A service Apple provided to the banks was selling the iPhone to the customer?

    That's a very weird way of looking at the world.
    ctt_zh
  • Reply 10 of 25
    hexclockhexclock Posts: 1,264member
    Respite said:
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    A service Apple provided to the banks was selling the iPhone to the customer?

    That's a very weird way of looking at the world.
    The phone is a mobile ATM and bank management device. It’s certainly a service to the banks. I can make direct check deposits with my phone eliminating reliance on a bank teller, for example. 
    damn_its_hotwatto_cobra
  • Reply 11 of 25
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 
    The iPhone it self
    watto_cobra
  • Reply 12 of 25

    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    Its not
    appleinsideruserdamn_its_hotwatto_cobra
  • Reply 13 of 25
    swat671swat671 Posts: 150member
    avon b7 said:
    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    Because users get choice. It also allows for competition. 

    On my phone, I choose which system to use and that is the default. 

    Now I hope that non-payment options become available like NFC for transport validation. 


    You can already use transit cards on the iPhone, like Clipper Card here in the Bay Area 
    chasmwatto_cobra
  • Reply 14 of 25
    swat671swat671 Posts: 150member
    I feel “meh” about the whole thing. All my cards are already in Wallet. Why would I care to use another service to do something the phone already does? I do like other apps being able to use the NFC app to read and write data. But I don’t care about other banks or whatever being able to access the NFC chip. 
    roundaboutnowappleinsideruserdamn_its_hot
  • Reply 15 of 25
    riverkoriverko Posts: 224member
    If any of banks i use decide to pull away from Apple Pay and will try to force me to use their app only for paying, bye bye… i don’t want any extra app for paying. I want all my cards in one wallet, like i have in a physical world, from where i choose which card i use. As i am not carrying three separate wallets for each card…
    edited January 19 appleinsideruserrob53beowulfschmidtdanoxwatto_cobra
  • Reply 16 of 25
    KTRKTR Posts: 280member
    ctt_zh said:
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    Samsung doesn't charge a license / fee for using its NFC chip. Google doesn't charge a license / fee for using its NFC chip. It would be very odd for only Apple to charge for using its NFC chip, something that should've been open from day one...  
    i think it’s also a security thing 
    damn_its_hotwatto_cobra
  • Reply 17 of 25
    avon b7avon b7 Posts: 7,753member
    swat671 said:
    avon b7 said:
    Why is this better for users? How do I choose which card/app is the default when I wave my device near a payment terminal?
    Because users get choice. It also allows for competition. 

    On my phone, I choose which system to use and that is the default. 

    Now I hope that non-payment options become available like NFC for transport validation. 


    You can already use transit cards on the iPhone, like Clipper Card here in the Bay Area 
    And in some other places too but only if Apple specifically opens the functionality for your app. . 

    It is not open for all to use and that's why, for example, iPhone users in Barcelona cannot use the T-Mobilitat app on public transport.

    Apple limits choice so hopefully this pressure from the EU will change that. 
    ctt_zh
  • Reply 18 of 25
    avon b7avon b7 Posts: 7,753member
    KTR said:
    ctt_zh said:
    ctt_zh said:
    omasou said:
    Charge a license fee to use the technology or like MC and Visa charge a per transaction fee + percentage.
    MC and Visa only charge a fee when they're providing a service don't they? What service would Apple be providing in this instance to warrant charging a fee / percentage? 

    Building, maintaining, and selling the actual device this is used on?
    Or was that free for Apple to make this platform available?
    Samsung doesn't charge a license / fee for using its NFC chip. Google doesn't charge a license / fee for using its NFC chip. It would be very odd for only Apple to charge for using its NFC chip, something that should've been open from day one...  
    i think it’s also a security thing 
    Definitely not security related. Android users have been using the same phone components on their phones for banking apps for years without issue. They have been using the phones biometrics capabilities to authenticate transactions too.

    The difference here is that limiting access to the NFC hardware meant users only had one choice for NFC payments: Apple Pay. 

    And Apple took a cut of everything. 
    ctt_zhdamn_its_hot
  • Reply 19 of 25
    avon b7avon b7 Posts: 7,753member
    riverko said:
    If any of banks i use decide to pull away from Apple Pay and will try to force me to use their app only for paying, bye bye… i don’t want any extra app for paying. I want all my cards in one wallet, like i have in a physical world, from where i choose which card i use. As i am not carrying three separate wallets for each card…
    And that means you have choice. 

    There is no problem with that but what you want might not be what others want. 

    My wife doesn't want only one option forced on her for contact less phone payments. That is the current situation. 

    She wants choice. Is there any reason she should be denied that by Apple?
    ctt_zh
  • Reply 20 of 25
    jimh2jimh2 Posts: 631member
    avon b7 said:
    riverko said:
    If any of banks i use decide to pull away from Apple Pay and will try to force me to use their app only for paying, bye bye… i don’t want any extra app for paying. I want all my cards in one wallet, like i have in a physical world, from where i choose which card i use. As i am not carrying three separate wallets for each card…
    And that means you have choice. 

    There is no problem with that but what you want might not be what others want. 

    My wife doesn't want only one option forced on her for contact less phone payments. That is the current situation. 

    She wants choice. Is there any reason she should be denied that by Apple?
    Your wife has a solution to her woes…buy an Android phone. No products will ever be everything to everybody. Manufacturers are the ones who should decide the features their products have. 
    beowulfschmidtdanoxwatto_cobra
Sign In or Register to comment.