Opening up the iPhone’s NFC system would allow Apple Pay rivals like PayPal and banks to create alternative mobile wallets on Apple devices.
Reuters has learned that Apple ostensibly offered to open up the iPhone’s near-field communication (NFC) chip used for contactless tap-to-go payments. The move is almost certainly meant to stave off regulatory action in the European Union.
The bloc is investigating the Cupertino company over its exclusive access to NFC on iPhones after complaints from banks and companies like PayPal prompted the European Commission to file a Statement of Objections against the iPhone maker.
Apple could open up the iPhone’s NFC to rivals like PayPal
“The European Commission is likely to seek feedback next month from rivals and customers before deciding whether to accept Apple’s offer,” the article reads. The report doesn’t detail concessions Apple allegedly offered to rivals.
The Commission will issue a decision next year, according to Reuters’ sources. Unless Apple opens up the iPhone’s NFC to third parties, the Commission could slap the company with a hefty fine of up to ten percent of its global annual revenue.
Apple does not provide software frameworks for developers to use to access the iPhone’s NFC chip for mobile payments. As a result, Apple Pay has remained the exclusive contactless mobile payment system on Apple’s devices.
The story says Apple Pay has support from more than 2,500 banks in Europe and over 250 fintechs and challenger banks.