The competition watchdog proposes lower fees and easier access to Apple’s payment technology to help digital banks and fintech firms challenge Apple Pay, reports Asianlite News Desk.
Britain’s competition regulator has proposed measures to reduce Apple’s dominance in contactless payments, seeking to lower fees and remove technical barriers that make it harder for rival services to compete with Apple Pay.
The Competition and Markets Authority (CMA) said on Tuesday that its proposals would provide competitors with easier access to Apple’s contactless technology and substantially reduce access fees, potentially opening the market to digital banks and other payment providers.
The regulator said the changes could encourage innovation, expand consumer choice and support Britain’s fintech sector.
CMA chief executive Sarah Cardell said the authority had received concerns that high fees, restrictive terms and technical limitations were preventing competitors from developing alternative services.
“By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here,” Cardell said.Potential services could include payment applications, digital identification, travel passes and digital keys.
The CMA is consulting on the proposed measures until November 17, after which it will make a final decision.
The proposals are less stringent than measures introduced by the European Union in 2024, which required Apple to provide third-party digital wallet developers with free access to certain contactless payment technologies. Since the EU measures were introduced, companies including PayPal, Klarna, Curve, BBVA and Norway’s Vipps have launched alternative payment applications, according to the CMA.
The British regulator’s intervention comes as contactless payments and digital wallets become increasingly popular among consumers.
Contactless transactions now account for 39% of all payments in Britain, compared with just 3% a decade ago, the CMA said. More than 60% of adults use a digital wallet, with Apple Wallet remaining the most popular option. Apple defended its existing system, saying it already allows developers to offer contactless payment services through near-field communication (NFC) technology and its secure element, which stores sensitive information such as payment credentials and cryptographic keys.
The company said these capabilities enable developers to create services covering in-store payments, public transport passes and event tickets while maintaining strong protections for users’ data, the Reuters reported.
However, Apple warned against measures that could weaken its security safeguards.“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections,” an Apple spokesperson said.
The company added that it would continue engaging with the regulator to reach an outcome that serves users’ interests.
The CMA’s final decision will determine whether Apple must change the terms under which rival providers access its contactless technology in Britain.
