UK regulator proposes lower Apple Pay fees, easier access

Britain’s Competition and Markets Authority said Tuesday it plans to reduce Apple’s control over contactless payments by requiring the company to lower fees and remove technical barriers for competing services.

The CMA said its proposals would create lower access fees and easier access to Apple’s contactless technology for rival payment services.

The measures are less strict than those the European Union imposed in 2024, which included free access for third-party developers. PayPal, Klarna, Curve and BBVA have launched alternative payment apps since the EU requirements took effect, according to the CMA.

The EU commitments require Apple to give wallet developers access to the iPhone’s NFC chip using host card emulation, allowing third-party apps to process contactless payments without using Apple Pay or Apple Wallet.

The CMA’s proposals would give developers access to HCE in addition to Apple’s existing secure element technology.

The regulator can impose requirements on Apple after designating it and Google as having strategic market status in smartphones last year.

Contactless payments account for 39% of all payments, compared with 3% a decade ago, the CMA said. More than 60% of adults use a digital wallet, with Apple Wallet the most popular in Britain.