UK Proposes Opening iPhone Payment Technology as Contactless Payments Reach 39%

Key Facts

The UK Competition and Markets Authority said on October 20, 2026, that it was consulting on proposals to expand companies’ access to near-field communication technology on iPhones, in a move that could broaden competition in mobile payments. The proposal would require Apple to provide access in line with the main standards for contactless technologies used internationally, while allowing a choice of technical methods. The step is currently limited to consultation; the authority has not yet announced a final decision. It comes in a market where contactless payments account for 39% of all UK payments, compared with 3% a decade ago, while more than 60% of adults use a digital wallet. The authority says Apple Wallet is the country’s most popular, making the terms of access to the technology directly relevant to rivals’ opportunities.

The proposals would retain Apple’s current option, the device’s embedded secure element, and require it to make host-based card emulation technology available as well, allowing developers to access both methods. The authority says the evidence it has reviewed does not point to inherent security concerns with either technology. It says access to both options could help UK companies offer payment services already available in the European Union. Proposed uses for access extend beyond wallets and payments to services such as digital identities and car, hotel and workplace keys. The issue therefore centers on the scope of use and its technical and commercial terms, alongside its potential impact on fintech companies’ ability to offer new services.

On commercial terms, the Competition and Markets Authority expects fees to be much lower than current levels, while Apple would still be compensated for providing access. But it is not proposing to set the access price or terms directly, instead setting principles for determining them. The authority’s chief executive, Sarah Cardell, said, "High fees, strict terms and technical restrictions associated with Apple’s contactless technology make it very difficult for competitors to innovate and compete." An official at the UK Payment Systems Regulator said improved access and lower fees "should strengthen competition and provide more choice for consumers and businesses." He said opening the technology could also support the expansion of open banking services and direct account-to-account payments.

The European Union’s experience suggests that opening access may precede the emergence of new competing services: after Apple agreed to provide access to the technology for payments there, Vipps launched the first alternative payment app six months later, followed by PayPal, Klarna, Curve and BBVA. Reuters reported that the European Union’s 2024 measures included free access for third-party developers, and that the UK proposals are less stringent than those measures. In Britain, no company has yet launched a wallet product to compete with Apple Wallet. Revolut welcomed the authority’s proposals, with its chief commercial officer saying the direction "gives British fintech companies a real opportunity to compete on equal terms with big tech." The UK fintech industry generates sales of nearly 214 billion pounds and supports more than 360,000 jobs, according to the authority.

Apple says developers can already offer contactless payments using its technology and the device’s embedded secure element. It added that it does not believe the authority should require it to adopt an approach that offers less privacy and security protection. The consultation follows the authority’s call in June 2026 for evidence on issues related to access to technology in the iPhone operating system, including the technical method of access and its pricing. The authority has also designated Apple as having strategic market status in the provision of its mobile platform under the UK’s digital markets competition regime, which took effect on January 1, 2025, and gives it the power to take targeted and proportionate action to promote competition. The consultation period ends on November 17, 2026, after which the authority will review responses before making a final decision on the proposals.