Apple should open access to contactless payment systems, says regulator

Apple could be forced to open access to its contactless payment system to rivals under new proposals from the competition watchdog.The Competition and Markets Authority (CMA) is consulting over proposals which would make it easier for firms to access Apple’s key mobile contactless technology, known as near field communication (NFC).CMA boss Sarah Cardell said firms have told the regulator that “high fees, strict terms, and technical restrictions” from Apple are making it “too difficult” for challengers to innovate and compete.The proposals are also expected to result in lower access fees, the regulator added.An Apple spokeswoman said: “Apple has made it possible for developers in the UK and around the world to securely offer contactless transactions directly within their apps through the NFC and SE Platform – for everything from in-store payments and transit passes to car keys and event tickets.“This solution enables developers and banks to create innovative products and services for their customers and facilitates competition between wallets, while ensuring users’ sensitive data remains protected by the highest security standards.“We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections.“We will continue to engage constructively to reach an outcome that is in the best interest of our users.”Ms Cardell said: “These proposals open the door to more innovation, more choice and economic growth, including in the UK’s important fintech sector.“By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here – from payment apps and digital IDs to travel passes and digital keys.”