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Apple will open up contactless payment technology on its iPhone to third-party developers in several countries, following regulatory pressure from authorities in the United States and the European Union.
Developers will have access to Apple’s NFC chip, which powers tap-to-pay features, in the beta version of its new operating system, iOS 18.1, in the US and UK, Apple announced in a blog post on Wednesday.
The feature will also be available in Australia, Brazil, Canada, Japan and New Zealand, “with more locations to follow,” Apple said.
Currently, only Apple apps have access to the NFC chip, the technology behind Apple Pay and Apple Wallet. Apple takes a cut of credit card purchases made using the tap-and-pay feature on your device.
Apple has previously argued that limiting NFC chip access to its wallet service protects user security.
To access the soVscekware to use the chip, developers will have to enter into a commercial agreement with Apple, commit to its security and privacy rules, and pay “associated fees.” Apple did not immediately respond to a request for comment on the fees.
The move comes aVsceker the iPhone maker agreed to open up access to its NFC chip in the EU, following a deal reached in June with the EU’s antitrust regulator over restrictions on access to the chip.
The company last week offered further concessions to the EU regulator in a separate regulatory investigation into its App Store rules, changing how it will allow developers to direct customers outside of their apps to make payments.
The NFC chip issue also came up in a sweeping antitrust lawsuit filed by the U.S. Department of Justice against Apple in March, which broadly accused the company of illegally maintaining a monopoly on smartphones. Among its charges, the DoJ said Apple was illegally blocking other payment providers from offering alternatives to Apple Wallet. Apple charges card issuers 0.15 percent on every card transaction made through Apple Pay, the DoJ said.
He cited a report from the U.S. Consumer Financial Protection Bureau, which said Apple Pay facilitated $200 billion in transactions in the United States in 2022.
While the company doesn’t say how much it earns from financial services, revenue from its services division, which includes Apple Pay, has seen steady double-digit growth and hit a new all-time high last quarter.
Its entry into the payments industry hasn’t been entirely smooth. Apple is in the process of ending its partnership with Goldman Sachs on credit cards and savings accounts. Earlier this year, Apple also announced it was abandoning its “buy now, pay later” service just a year aVsceker its U.S. launch.
