Britain proposes lower fees for Apple rivals as 62% of adults use digital wallets
Key Facts
Britain's Competition and Markets Authority has opened a consultation on a conduct requirement that would oblige Apple to make near-field communication technology available to developers and competitors on new terms, anticipating a significant reduction in access fees. The proposal targets the technology used for contactless payments on iPhones, paving the way for wallets that compete with the company's own offering. The regulator said no company in Britain has yet launched a wallet competing with Apple Wallet. It proposes access to the technology on "fair, reasonable, transparent and non-discriminatory" terms, according to the consultation page. The move comes in a market where digital wallets are used by a broad share of British adults, according to consumer group Which?.
The proposed pricing approach would establish principles for determining developers' access fees, rather than directly setting prices and access terms. According to the consultation document, cost plus an appropriate return would be one factor considered when determining fees. Other considerations put forward by the regulator include the value of the service Apple provides to parties seeking to use the technology. The proposal thus leaves room for the company to earn a return within the regulator's proposed framework for access on fair and reasonable terms. The consultation was preceded by a call for evidence on technical access and pricing, both of which are addressed by the new requirements under discussion.
On the technical side, Apple would have to provide access to both host card emulation and the secure element, while it currently offers the latter standard in Britain. The regulator provisionally concluded that both standards could be used safely for payments, according to the consultation document. But Apple raised concerns that malware on a device could steal payment data from wallets using host card emulation. The company also objected to being required to adopt an approach it considers less protective of privacy and security, according to a response cited by Reuters. Apple said: "We do not believe the CMA should require Apple to adopt an approach that provides lower levels of privacy and security protection."
Apple had announced that developers could offer near-field communication transactions within their apps using the secure element, starting with operating system version 18.1. In its original announcement, the company said these transactions operate independently of Apple Pay and Apple Wallet. Its current arrangement requires developers to enter into a commercial agreement with the company before offering the service through this platform. It also requires them to obtain permission to use near-field communication technology and the secure element, and to pay the associated fees, according to Apple. The company allows users to choose any eligible app as their default contactless payment app, according to its developer support page.
The proposals come as mobile payments become more widespread in Britain, with 65% of adults registered for at least one service in 2025, compared with 57% in 2024, according to UK Finance. In a study published on the day of the announcement, Which? said 62% of British adults currently use a digital wallet. It added that around three-quarters of digital wallet users had never considered switching providers. David Geale, an official at the Financial Conduct Authority, said opening up the technology would support payments directly from bank accounts. Geale linked that possibility to the expansion of open banking.
The move follows a regulatory process in which the Competition and Markets Authority designated Apple as having strategic market status in its mobile platform on 22 October 2025. The conduct requirement now under consideration remains a proposal subject to consultation before a final decision. To enable parties to participate, Apple confirmed it would not use confidentiality provisions to prevent them from responding to the consultation, according to the regulator's published page. The deadline for responses is Tuesday 17 November 2026, allowing parties to set out their positions on access to the technology and its pricing. After the deadline, the regulator will assess the submissions before issuing its final decision.