UK Competition Watchdog Moves to Break Apple's Grip on iPhone Tap-to-Pay
UK Competition Watchdog Moves to Break Apple’s Grip on iPhone Tap-to-Pay #
The UK’s Competition and Markets Authority launched a formal consultation on 20 October proposing to compel Apple to open up iPhone contactless payment technology to rival wallet providers.
The proposals, issued under powers granted by the Digital Markets, Competition and Consumers Act 2024, would require Apple to provide access through both major international near-field communication standards: the host-based card emulation (HCE) method, which stores payment data off the device, and the secure element (SE) approach Apple currently offers in the UK. The CMA also wants the move to result in “substantially lower access fees,” responding to long-standing complaints from fintech companies and banks that Apple’s current terms are commercially unworkable.
The authority had earlier designated Apple as having Strategic Market Status over its mobile platform, granting it the power to impose targeted conduct requirements. CMA chief executive Sarah Cardell said the watchdog had heard from businesses that “high fees, strict terms, and technical restrictions” make it “too difficult for challengers to innovate and compete.”
Contactless payments now account for 39% of all UK transactions, up from just 3% a decade ago, yet no company has managed to launch a digital wallet in the UK to rival Apple Wallet. After the EU’s 2024 mandate required Apple to open NFC access to third-party developers free of charge, firms including Vipps, PayPal, Klarna, Curve and BBVA launched competing payment apps within months. The UK’s proposals stop short of demanding free access, but the CMA argues they would still generate meaningful competition.
The CMA noted that the UK fintech sector generates around £214 billion in annual turnover and supports more than 360,000 jobs, and said Apple’s current fees and access rules risk “blocking their ability to innovate and grow.” The Financial Conduct Authority welcomed the proposals, with a senior official stating that improved access and lower fees “should create greater competition and more choice for consumers and businesses.”
Apple pushed back, arguing that its existing framework already allows developers to offer secure contactless transactions across a range of use cases, and that it does not believe the CMA should require it to adopt a different approach. The company said it would continue to engage constructively.
The consultation closes on 17 November 2026, after which the authority will assess responses before issuing a final decision.
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