After facing increasing pressure from the DMA regulators, Apple announced last month that it would open up its tap-and-pay technology to third-party developers in the European Union. And now, the Cupertino tech giant has confirmed that this feature is coming in the developer seed for iOS 18.1. The interesting thing is the feature won’t be limited to the countries in the EU. Yes, you’ve heard it right. Contrary to what everyone thought, this won’t be one of the EU-exclusive iPhone features.
Right now, you can only use Apple Pay to make such payments, even though some other apps can also read NFC tags. Interestingly, that won’t be the case anymore. In fact, you’ll also be allowed to change the default app that launches on the double-click of your iPhone’s Side button.
NFC or Near Field Communication is a short-range wireless technology that allows contactless transactions using Secure Element within Apple apps. For years, the European Commission has been investigating Apple’s exclusive access to the iPhone’s NFC capabilities. The giant was held responsible for restricting competition in the mobile payments space. To avoid huge compensation, Apple had to open up its walled garden and contactless iPhone payments to third-party developers.
Apple also explained that the NFC chip can be used for additional things like car keys, student IDs, corporate badges, hotel keys, event tickets, reward cards, and much more. Government IDs will also be supported in the future.
According to Apple’s Press Release, the new NFC and SE (Secure Element) APIs will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US, with additional locations to follow. That means third-party app developers can offer NFC contactless payments and transactions using the Secure Element (SE) tech built into iPhones from within their own apps, separate from Apple Pay and Apple Wallet.
It’s unfortunate that Apple isn’t offering the feature in India which is one of the most-growing markets for the company. Digital payments are booming in India, thanks to United Payments Interface or UPI which allows users to pay digitally by scanning a QR code or UPI ID. While there have ben rumors that Apple is planning to launch Apple Pay in India, there is no confirmation so far.
Honestly, it’s a huge thing for Apple to open up its exclusive technology inside iPhones that developers weren’t allowed to touch before. However, Apple isn’t going to offer the iPhone’s NFC chip features for free. Well, that’s the classic Apple’s move. It seems the giant has got ready (forcefully) to make the changes, but it will make sure to find a way to reap the benefits and make money wherever it can. Developers will have to “enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees”. While Apple didn’t mention the exact numbers, it’s evident that there will be certain strings attached.
Unarguably, it’s nice to see developers getting deeper access to the Apple ecosystem and exclusive iPhone features. However, this also brings the chances of over-complicating the contactless functionality. Only Apple Pay and Apple Wallet can realize the full potential of the NFC and SE technology. Also, since these apps are directly offered by Apple, you can use those apps without thinking twice. We aren’t sure if we can say the same for other third-party apps.
While Apple is opening up its NFC technology, there will be no changes to Apple Pay and Apple Wallet. Developers and users will continue to enjoy the easy, secure, and private experience of Apple Pay and Wallet.
We might see Apple coming up with more changes with iOS 18 and iPhone 16 which is ready to make a debut next month.
