UK Proposes Opening iPhone Payment Standards as Contactless Payments Reach 39%
Key Facts
The UK Competition and Markets Authority opened a consultation on 20 October 2026 on a proposed conduct requirement that would require Apple to provide access to NFC technology on iOS devices on fair, reasonable, transparent and non-discriminatory terms. The proposal targets the Secure Element and Host Card Emulation standards, which enable contactless payment services on phones. The measure remains under consultation, and the authority has not issued a final decision. The CMA says opening access is intended to address restrictions that hinder payment service providers and digital wallets from entering the UK market. Access terms and fees remain central to the proposal, alongside access to the two technical standards.
Apple currently makes the Secure Element standard available in the UK, while it does not make Host Card Emulation available, according to the authority. Secure Element stores information on the device, while the information needed to run HCE is stored externally. The CMA says making both standards available would support payment and other uses, allowing developers to choose the technology suited to their services. The authority told a parliamentary committee on 20 October that UK companies had raised broad concerns that Apple’s current terms did not allow for a viable business model. The committee quoted the authority as saying that “the terms on which Apple allows access are not commercially viable” because of the fees, conditions and technical requirements. The CMA identified two barriers in its proposal: access through the two main standards, and ensuring fees and terms allow sustainable businesses to be developed.
The authority is not proposing to set the access price or terms itself, but is setting pricing principles and expects fees to be far below Apple’s current charges. The CMA says this approach would allow Apple to continue to be rewarded for providing access while reducing costs for companies using the technology. The proposal does not mean access will automatically be free in the UK. In the European Union, the European Commission made Apple’s commitments binding on 11 July 2024, including free HCE access for wallet providers. That offers a different path from the UK proposal, which leaves the setting of commercial terms to principles the authority will establish. The CMA says companies have raised concerns that current access terms may prevent them from building services capable of competing.
The consultation comes as phone-based and contactless payments grow in importance. Contactless payments currently account for 39% of all payments in the UK, compared with 3% of transactions a decade ago, according to the CMA. More than 60% of adults also use a digital wallet, and Apple Wallet is the country’s most popular wallet, the authority says. In earlier data cited by the CMA, the share of adults registered with at least one phone payment service rose to 57% in 2024 from 42% in 2023. The authority says no company has launched a wallet product in the UK that competes with Apple. The figures point to a growing user base targeted by the proposed access rules.
The CMA cites the European Union’s experience as an indication of what competition may enable after NFC access is opened. Six months after Apple agreed to make the technology available for payments there, Vipps launched the first alternative payment app, followed by PayPal, Klarna, Curve and BBVA, according to the authority’s statement. Potential uses extend beyond contactless payments, currently the technology’s most common use, according to the CMA. Other uses include direct payments from bank accounts, digital identities, travel cards and digital keys. The authority believes opening access could also give developers scope to build services in these areas. The CMA’s call for evidence says the UK accounts for 11% of the global fintech industry.
The broader regulatory backdrop dates to the CMA’s decision on 22 October 2025 to designate Apple as having strategic market status in relation to its mobile platform. The authority had previously examined the digital wallet market and access terms for payment technology as part of its regulatory work on mobile platforms. The current consultation seeks to determine whether the proposed access requirements are sufficient to address companies’ concerns over fees, terms and technical compatibility. The consultation closes on 17 November 2026, with responses due by 5 p.m. that day. The authority will assess the responses before making a final decision on the proposal. In markets, Apple shares closed at $356.27 on 13 November, according to EL7 data.