Apple Contactless Payments Access Could Bring New UK Apps, CMA Says

UK smartphone users could benefit from new payments, ticketing and travel apps if Apple expands access to its contactless payment technology, the Competition and Markets Authority (CMA) has said.

The competition watchdog also wants Apple to “substantially reduce” the fees it charges businesses for using the technology.

CMA calls for lower Apple contactless payment fees

The CMA says Apple’s current fees are “stymieing” innovation and limiting the growth of financial technology companies and other businesses. It is discussing proposals that would lower the charges.

Apple argues that expanding access to its contactless technology could compromise security and says the current arrangement will not prevent innovation.

Nearly two in five payments are now made using contactless technology, according to the watchdog. It also says nearly 60% of people use a digital wallet, with Apple’s wallet the most popular in the UK.

Apple defends privacy and security measures

Apple told the BBC in a statement that its current arrangements allow developers in the UK and around the world to securely offer contactless transactions directly within their apps. These include in-store payments, transport passes, car keys and event tickets.

“This solution allows developers and banks to develop innovative products and services for their customers, fostering competition between wallets while ensuring that users’ sensitive data remains protected with the highest security standards.”

“We believe the CMA should not require Apple to adopt an approach that is less protective of privacy and security. We will continue to work constructively to achieve an outcome that is in the best interest of our users.”

UK proposal would allow HCE contactless payment apps

Last year, Apple warned British regulators against following the same approach as the EU, which forced the company to make various technologies available to rivals.

However, the CMA said that, unlike the EU, it was focused on ensuring interoperability for certain aspects of Apple’s technology, including digital wallets and watches.

The proposed measure would require Apple to allow access to apps that make payments using Host Card Emulation (HCE), a widely used alternative contactless technology standard that Apple currently does not allow in the UK.