Apple May Be Required to Allow External App Payments, Third-Party NFC Access in UK: Report

Apple could face fresh regulatory changes in the UK after the country's competition watchdog proposed measures that would require the company to allow developers to direct users to third-party payment options and could pave the way for rivals to Apple Pay. The proposals are intended to increase competition, reduce costs for developers, and expand payment choices for users. If adopted, UK fintech companies could also gain broader access to the iPhone's contactless payment technology to build competing payment services, although the consultation process is still underway.

UK Proposes Changes That Could Open Apple Pay to Competition

As per a Reuters report, the UK's Competition and Markets Authority has launched a consultation on new rules for Apple's App Store and Google's Play Store under the country's digital markets regime. The regulator has proposed allowing developers to direct users to payment methods outside the two app stores. The report adds that Apple currently blocks such practices, while Google allows them with certain restrictions.

According to the report, the CMA said Apple and Google should continue to be paid for the services they provide, but any fees for alternative payment methods must be fair, reasonable, and lower than existing app store commissions. It also said developers should pass any savings on to consumers or reinvest them in innovation.

The report also says the CMA is considering requiring Apple to expand access to its near-field communication technology used for contactless payments. This could allow UK fintech companies and developers to build alternatives to Apple Wallet and Apple Pay within iOS apps, while supporting account-to-account payments and emerging technologies such as digital currencies.

The report adds that the proposals fall under the UK's digital markets framework, which allows the CMA to impose company-specific rules on businesses designated as having strategic market status. Apple and Google received that designation for their mobile ecosystems last year.

Google said it had updated the Play Store terms earlier this month to allow developers to direct users to complete purchases outside the platform, according to the report. The CMA will review those changes before deciding later this year whether further requirements are needed.

Apple reportedly opposed the proposals, arguing they could weaken security protections, increase fraud risks, reduce transaction verification, and expose users to scams, misleading sales practices, and attempts to bypass parental controls.

Earlier this year, Apple and Google agreed to improve transparency across their app stores by changing rankings, reviews, and developers' access to platform features. Those commitments did not cover app store commissions, which can reach up to 30 percent. The report notes that the CMA continues to prioritise alternative payment methods, while regulators in the European Union, the United States, and Japan are examining similar issues.

Notably, Apple already expanded access to its NFC technology with iOS 18.1 in select markets in 2024, allowing authorised third-party developers to offer NFC-based transactions through their own apps using the Secure Element. The update enabled support for in-store payments, transit cards, digital keys, loyalty cards, and similar services beyond Apple Pay and Apple Wallet, although developers must still obtain Apple's approval and meet specific security requirements.