Apple would have to open the iPhone's contactless payment technology to rival UK apps at lower fees, under proposals the Competition and Markets Authority (CMA) published today (Tuesday). The regulator said Apple's fees and access rules are blocking UK fintechs from building competing services.
No firm has yet launched a wallet to rival Apple's in the UK, according to the CMA. In the European Union, Vipps, PayPal, Klarna, Curve and BBVA have all done so since Apple opened access there in 2024.
London's trading industry is coming home!
The proposed conduct requirement would make Apple offer host-based card emulation (HCE), which keeps payment data off the device. UK developers can currently use only the on-device secure element (SE).
The CMA would not set prices itself. It expects charges to be "substantially lower" than Apple's current fees. It did not publish them.
Contactless made up 39% of UK payments in 2025, up from 3% a decade earlier, according to UK Finance data cited by the regulator. A Which? survey found 62% of UK adults use a digital wallet , with Apple Wallet the most popular at 50%.
Brokers have moved into payments as well. Trading 212 rolled out multi-currency payment cards in May 2024, following eToro, Equiti and XS. Under the CMA plan, UK firms like these could seek the same access to offer tap-to-pay inside their own apps.
Five Rival Wallets Launched in Europe
The European Commission opened its own case against Apple in 2020 and put Apple's offer to open the iPhone's NFC chip out for market testing in January 2024.
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Six months later, Brussels made the commitments binding, giving rival wallets free access to tap-and-go payments.
Norway's Vipps went live on iPhones in December 2024, the first alternative to Apple Pay, according to the CMA. PayPal followed in Germany, and London-based Curve launched Curve Pay on iOS across the European Economic Area in May 2025. Lloyds Banking Group agreed to buy Curve that November.
The UK plan stops short of the EU terms on price. The CMA expects Apple to keep charging for access, and said offering both standards would let UK firms roll out payment services already available in the EU.
"These proposals open the door to more innovation, more choice and economic growth," Sarah Cardell, chief executive of the CMA, said.
Cardell said "high fees, strict terms, and technical restrictions" had made it too difficult for challengers to compete. The regulator also listed digital IDs, travel passes, digital keys and account-to-account payments as services that wider access could support.
Apple faces a similar fight in the US, where a group of credit unions took the company to court in 2023 over its control of iPhone tap-to-pay.
Apple Pushes Back on Security
An Apple spokesperson said the CMA should not require the company "to adopt an approach with lower privacy and security protections," according to Reuters. Apple said it had already made contactless payments available to developers through NFC and the secure element.
That route opened to UK developers in 2024 and requires a commercial agreement with Apple. UK banks have worked within Apple's wallet, and Monzo became the first UK bank to offer monthly payments through Apple Pay in September 2024.
The Financial Conduct Authority (FCA) backed the proposals. It and the Payment Systems Regulator (PSR) began examining how the growth of digital wallets affects consumers and businesses in July 2024.
"Opening up this technology will also support the expansion of open banking," said David Geale, the FCA's executive director for consumers, payments and competition.
The CMA found in October 2025 that Apple holds substantial and entrenched market power over its mobile platform. That designation lets it impose conduct requirements under the Digital Markets, Competition and Consumers Act 2024.
The regulator ran a call for evidence on iPhone NFC access in June and July. The consultation closes on November 17, and the CMA said it would make a final decision after assessing responses.
