The EU commission is set to approve Apple’s previously-announced policy changes regarding access to the NFC chip on the iPhone, with the view of increasing competition in the contactless payments market. The commission’s decision will be officially announced in the coming weeks, via Reuters.
With these changes, apps will be allowed to become the default wallet app that appears when users double-click the side button or hold their phone near a payment terminal. However, the relaxation of policy only applies to apps available inside the European Union, not worldwide.
Until now, Apple has stringently locked down access to the NFC contactless chip on the iPhone, citing user experience, privacy, and security concerns. That has allowed Apple Pay to become the de facto contactless payment option on the iPhone, with effectively no competition.
From a customer-facing perspective, users will be able to download alternative apps and pick them as their default contactless payments app on their device. This will then allow the app to supplant system features typically associated with Apple Pay, like near-field activation and double-click activation.
That said, it will not be an unencumbered free-for-all. App developers must request an entitlement from Apple to get these privileges. They must meet various industry standards and hold appropriate licenses to traffic consumer payments, in order to be eligible.
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