Apple is facing fresh pressure in the UK, where regulators want the company to make it easier and cheaper for rival payment apps to offer contactless payments on the iPhone.
The UK’s Competition and Markets Authority (CMA) published new proposals that would require Apple to loosen restrictions on its NFC technology, which allows iPhone users to pay at stores by tapping their devices against payment terminals.
Although Apple opened NFC access to third-party developers in the UK in 2024, the regulator argues that the company’s fees and technical requirements have discouraged competitors from entering the market.
Developers must sign an agreement with Apple, pay access fees, and use the iPhone’s Secure Element, a dedicated chip that stores sensitive payment credentials.
The CMA believes those requirements make it unnecessarily difficult for rival payment services to compete with Apple Pay.
UK Wants Apple to Follow Its EU Approach
One of the biggest proposed changes involves host card emulation (HCE), a technology that allows contactless payments without routing transactions through Apple’s Secure Element.
The CMA wants Apple to support HCE in the UK while substantially reducing the fees developers pay for NFC access.
Apple already provides developers with free HCE access in the European Union under commitments agreed in 2024.
Since those changes took effect, competing contactless payment apps have launched in the EU. By comparison, the UK has yet to see a rival wallet-style service emerge under Apple’s existing rules.
Regulators see that difference as evidence that Apple’s current approach may be discouraging competition.
Apple Raises Security Concerns
Apple opposes the proposal, arguing that requiring HCE support could weaken the privacy and security protections available to iPhone users.
“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections,” the company said in a statement.
Apple also indicated that it would continue working with the regulator toward a resolution.
However, after reviewing the available evidence, the CMA reached a different conclusion, saying it found no indication that HCE is inherently less secure than payments handled through the Secure Element.
That disagreement will likely be central to the regulator’s final decision.
What Happens Next?
The CMA is accepting public feedback on its proposals until November 17, 2026, after which it will review submissions before making a final decision.
For iPhone owners in the UK, the changes could eventually mean more choices when making contactless payments, rather than relying primarily on Apple Pay.
The regulatory pressure also extends beyond Europe. In the United States, an antitrust lawsuit involving banks and credit unions challenging Apple’s payment fees cleared a significant legal hurdle in September.
