Sunday, February 16, 2025

Apple Opens Up Apple Pay in the EU: A Big Win for Users

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  • Apple agrees to EU’s demands to open NFC tech to third-party developers.
  • Users can change default payment apps and use features like Face ID and Touch ID.
  • Avoids hefty fines; changes benefit iPhone users in the EU.

Apple has decided to open up its near-field communications (NFC) technology, which powers Apple Pay, to third-party developers in the European Union (EU).

This significant move comes after growing pressure from EU regulators to make Apple’s ecosystem more accessible to competitors.

The change is part of a legally binding agreement with the European Commission (EC) and will last for the next ten years.

Why Is This Happening?

Over the past few years, Apple has been facing increased scrutiny over its restrictive policies, particularly concerning its NFC technology.

The EC has been pushing for more openness to ensure fair competition and innovation.

Apple’s agreement to these demands means that third-party developers can now use the NFC capabilities on iOS devices without any charges.

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What Changes Are Coming?

Once the changes are in effect, iPhone users in the EU will enjoy several new freedoms:

  • Third-Party Access: Developers can now access NFC features on iOS devices. This means apps other than Apple Pay can use NFC to enable tap-to-pay services.
  • Default Payment App: Users can change their default wallet and payment app from Apple Pay to any other app. This gives users more choice and flexibility.
  • Enhanced Features: Third-party payment apps can utilize features like Field Detect (which opens the default payment app when the phone is near an NFC reader), double-clicking the side button to open a payment app, and using authentication methods like Face ID and Touch ID.

Avoiding Hefty Fines

Apple’s compliance with the EC’s demands allows the company to avoid substantial fines. The potential fine could have been up to 10% of Apple’s annual turnover.

Given Apple’s revenue of around $400 billion in 2023, this fine could have been about $40 billion.

By agreeing to these changes, Apple not only avoids these fines but also demonstrates a willingness to comply with regulatory requirements.

Impact on Users

For iPhone users in the EU, this development means greater flexibility and choice when it comes to digital payments. No longer restricted to Apple Pay, users can now explore and use alternative wallet and payment apps.

These third-party apps will not be limited in functionality and will support advanced features like Face ID and Touch ID for secure transactions.

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What’s Next?

Although the exact implementation timeline is unclear, the EU is expected to ensure that these changes happen promptly. This means that iPhone users in the EU could start using third-party NFC payment apps soon.

However, it remains uncertain if Apple will extend these changes globally. While Apple supported RCS messaging worldwide after EU pressure, other changes, like allowing third-party app stores, have remained specific to Europe.

This new development marks a significant shift in Apple’s approach to its ecosystem. By opening up its NFC technology to third-party developers, Apple not only complies with EU regulations but also provides more options for its users.

This change is a positive step towards fostering competition and innovation in the digital payment space.

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Emily Parker
Emily Parker
Emily Parker is a seasoned tech consultant with a proven track record of delivering innovative solutions to clients across various industries. With a deep understanding of emerging technologies and their practical applications, Emily excels in guiding businesses through digital transformation initiatives. Her expertise lies in leveraging data analytics, cloud computing, and cybersecurity to optimize processes, drive efficiency, and enhance overall business performance. Known for her strategic vision and collaborative approach, Emily works closely with stakeholders to identify opportunities and implement tailored solutions that meet the unique needs of each organization. As a trusted advisor, she is committed to staying ahead of industry trends and empowering clients to embrace technological advancements for sustainable growth.

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