Britain’s competition regulator wants Apple to charge less for access to its contactless technology and to remove the technical barriers that keep rival wallets off the iPhone. The Competition and Markets Authority published the proposals on Tuesday, with the aim of letting other services compete with Apple Pay. They would apply in the UK only.
The proposals, detailed by Reuters, would lead to substantially lower access fees and easier access to Apple’s contactless hardware. The CMA can impose these requirements because it gave Apple and Google strategic market status in smartphones last year. It first floated opening up Apple’s NFC technology in June, and Tuesday’s proposals build on that.
Apple would have to add host card emulation to the iPhone
Apple currently offers only its secure element in the UK, the on-device chip that stores sensitive information such as card credentials and cryptographic keys. The CMA wants Apple to add host card emulation, known as HCE, which stores payment data off the device. HCE lets a third-party app process contactless payments without going through Apple Pay or Apple Wallet.
The European Union already requires HCE access under its 2024 commitments, and that access is free for third-party developers. The UK plan stops short of free access, instead setting principles for how Apple prices it and expecting fees well below today’s.
Since the EU rules took effect, Vipps, PayPal, Klarna, Curve and BBVA have launched alternative payment apps there, the CMA said. No company has launched a wallet to compete with Apple’s in the UK.
Apple says the proposals would weaken privacy and security
Apple argues that developers can already offer contactless payments through its NFC technology and secure element. The company says that setup supports in-store payments, transit passes and event tickets while protecting user data.
An Apple spokesperson said the company does not believe the CMA should require an approach with “lower privacy and security protections.” The CMA says the evidence it has seen suggests neither HCE nor the secure element raises inherent security concerns. Apple will keep engaging with the regulator on the proposals, according to the spokesperson.
Revolut backed the plan, with chief commercial officer David Tirado saying NFC access through HCE is critical and that the proposals give UK fintechs a chance to compete with Big Tech on equal terms. CMA Chief Executive Sarah Cardell said the proposals would boost innovation, consumer choice and Britain’s fintech sector.
Contactless now covers 39% of payments in Britain
Contactless made up 39% of all payments in Britain in 2025, up from 3% a decade ago, according to UK Finance figures the CMA cites. The regulator is taking feedback on the proposals until November 17 before making a final decision. More than 60% of adults in Britain use a digital wallet, and Apple Wallet is the most popular one.
