UK Regulator Proposes Forcing Apple to Open iPhone Contactless Payments

The UK’s Competition and Markets Authority (CMA) has proposed measures that would require Apple Inc. to allow competitors access to the iPhone’s contactless payment technology at significantly reduced fees. The move addresses concerns that Apple’s tight control over its mobile ecosystem is hindering innovation and competition within the fintech sector.

Apple’s near field communication (NFC) system currently powers its digital wallet, Apple Pay, and the CMA’s proposal aims to open this technology to rival firms. The regulator’s investigation was prompted after Apple was designated as having a dominant position in the mobile ecosystem market. The watchdog expressed worries about the high charges and restrictions Apple places on other companies seeking to use its contactless payment features.

In a statement released Tuesday, the CMA noted that while fintech companies have flourished in the UK, Apple’s fee structure and access policies pose barriers for these firms to expand and innovate. The watchdog pointed out that unlike the European Union, where other wallet-type products have been launched, the UK market has yet to see any significant competitor to Apple Pay. This regulatory action aims to change that landscape.

The potential opening of Apple’s contactless infrastructure would benefit fintech entities such as PayPal Holdings Inc., Revolut Ltd., and Monzo Bank Ltd. Contactless payments have seen dramatic growth in the UK, rising to 39% of all card transactions in 2026 from a mere 3% ten years earlier. More than 60% of UK adults reportedly use digital wallets, underscoring the importance of this technology in daily financial activities, according to data from UK Finance.

Historically, British regulators have sought to encourage greater competition among digital wallet providers and have promoted payment methods that bypass traditional card networks like Visa Inc. and Mastercard Inc. The CMA’s latest proposal aligns with these goals by potentially lowering barriers to entry for new and existing fintech firms.

Apple responded to the CMA’s proposal by emphasizing the security benefits of its current system. The company pointed out that it has enabled developers worldwide to securely conduct contactless transactions within their applications. Apple also expressed concerns that the CMA’s suggested approach might compromise privacy and security protections that are integral to its platform.

The CMA will accept feedback on its proposal until November 17, after which a final decision is expected. This development follows earlier findings by the watchdog that identified Apple and Alphabet Inc.’s Google as holding a duopoly over mobile platforms in the UK. Both companies had previously offered changes to improve platform interoperability and fairness for app developers in response to regulatory scrutiny.

Being designated with strategic market status does not imply any wrongdoing by these companies, but it subjects them to enhanced regulatory oversight and conduct obligations. This status reflects the UK’s increasing focus on monitoring dominant tech firms to ensure competitive markets.

David Tirado, chief commercial officer at Revolut, welcomed the CMA’s proposal, calling it "a critical step toward driving genuine competition." He highlighted that opening Apple’s contactless technology infrastructure would create real opportunities for UK fintech companies to compete more fairly with major technology players.

The CMA’s initiative could reshape the digital payments environment in the UK by fostering innovation and expanding consumer choice. If Apple is required to grant easier access to its NFC capabilities, fintech companies may develop new products and services that challenge the current dominance of Apple Pay, potentially benefiting millions of users across the country.