Britain's Competition and Markets Authority (CMA) proposed lower fees and easier access to Apple's iPhone contactless payment technology on 20 October 2026, aiming to help rival digital wallets compete with Apple Pay.
Unlike the European Union's approach, the UK proposal does not require Apple to provide free access to third-party developers.
The consultation marks another test of how far regulators should go to open up smartphone technology to competitors.
Contactless payments now account for 39% of all payments in Britain, according to figures cited by the CMA, while more than 60% of UK adults use a digital wallet. Apple Wallet remains the most popular, giving the company a strong position in a market increasingly shaped by mobile payments.
Britain Takes a Different Approach to iPhone Contactless Technology
The CMA said its proposals would deliver 'substantially lower access fees' and remove technical barriers that could make it harder for rival services to develop. The consultation remains open until 17 November, after which the regulator will make a final decision.
The proposed measures are less far-reaching than the commitments Apple accepted in the EU in 2024.
Under that arrangement, eligible third-party wallet developers can access the iPhone's near-field communication (NFC) technology free of charge, subject to specified conditions. Companies including PayPal, Klarna, Curve and BBVA have since launched alternative payment apps in the EU, Reuters reported.
The UK proposal would give developers access to host card emulation (HCE) alongside Apple's existing secure element technology. HCE allows third-party apps to process contactless transactions without routing them through Apple Pay or Apple Wallet, potentially creating more room for competing payment services.
The CMA can impose requirements following its decision last year to designate Apple and Google as having strategic market status in smartphones. That designation gives the regulator powers to introduce measures addressing competition concerns in their respective ecosystems.
Sarah Cardell, the CMA's chief executive, said the regulator had heard that 'high fees, strict terms, and technical restrictions' made it too difficult for challengers to innovate and compete.
Digital bank Revolut welcomed the proposal. Its chief commercial officer, David Tirado, said access to NFC technology through HCE was critical, adding that the CMA's direction created an opportunity for UK fintech companies to compete more equally with major technology firms.
Apple Raises Privacy and Security Concerns
Apple argues that developers already have ways to offer contactless payments using its NFC technology and secure element, which stores sensitive information such as payment credentials and cryptographic keys. The company says its existing arrangements support in-store payments, transit passes and event tickets while protecting users' data.
'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 it considers best for users.
That objection is central to the debate, but it should not be mistaken for proof that the proposed system would necessarily be less secure. HCE uses a different technical approach from the secure element, and the competing claims concern how access should be designed and safeguarded, as well as who should control it.
For consumers, the potential benefit is greater choice in how they make contactless payments on an iPhone. More accessible technology could give banks and fintech companies additional scope to develop their own wallet services, although the consultation has not yet established what products will launch or whether users will pay less.
The CMA's final decision will determine how the UK's approach develops and what access terms Apple may ultimately have to offer.
