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The CMA wants rival payment firms to get cheaper access to the iPhone's contactless technology.
Britain's competition regulator, the Competition and Markets Authority (CMA), is proposing to open up the iPhone's contactless technology to rival payment firms while also lowering the cost of access. The CMA published the plans on 20 October, and the consultation period is open until 17 November. The move could help other digital wallet platforms rival Apple Pay.
The proposal focuses on near-field communication (NFC) technology, which is what allows a phone and payment terminal to communicate. The CMA argues that Apple's current access rules and fees could hold back UK fintech firms. Apple opened its NFC platform to British developers in 2024, but the CMA said a rival wallet is yet to launch in the UK.
The CMA said businesses were concerned that Apple's current arrangement may not be commercially viable. They also said that fees and terms may be cumbersome, and that different technology approaches across markets can make it harder to scale. The CMA's consultation argued that the lack of meaningful UK rollouts demonstrated 'a clear and pressing case for intervention'.
What the CMA Is Proposing
The plan has two core parts. The first would require Apple to offer both of the main contactless standards used globally. This would mean UK companies would have access to host-based card emulation (HCE). This technology allows data to be stored off the phone. Apple currently only offers British businesses access to secure element technology, which stores data directly on the phone.
The second element is about cost. The CMA does not intend to set a specific price. Rather, it proposes a series of principles for how fees should work. It expects the changes to result in substantially lower charges than those in place today. The goal is to make access viable for developers while ensuring Apple is paid fairly.
Law firm Bratby Law said fees would be capped based on four principles: cost, value, flexibility and simplicity. Apple would be required to demonstrate to the CMA that its charges meet those criteria.
These measures are not yet in effect. The CMA is now consulting on the proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024. The CMA can propose these requirements because it designated Apple as having strategic market status for its mobile platform in 2025.
Figures cited by the CMA state that contactless payments are growing in the UK. UK Finance data shows contactless payments accounted for 39% of all UK payments in 2025 – up from 3% a decade earlier. These figures include contactless card payments and phone payments. Research from Which? revealed that 62% of UK adults use a digital wallet, with Apple Wallet being the most popular.
The CMA cited estimates that the UK fintech industry generates around £214 billion in turnover and supports over 360,000 jobs.
Apple Raises Security Concerns
Apple has raised concerns about the proposed changes. It said developers can already provide contactless services through a combination of NFC technology and a secure element, an approach the company says protects user data. Apple also said it does not believe the CMA should require it to use an approach with 'lower privacy and security protections'. The company said it will continue working with the regulator.
The CMA, however, disagrees. It said the available evidence suggests neither technology poses inherent security concerns. According to Chief Executive Sarah Cardell, the CMA had heard that Apple's current fees, technical limits and terms made things 'too difficult' for rival firms to innovate and compete.
Revolut welcomed the proposed changes. Chief Commercial Officer David Tirado said they could help UK fintech firms 'compete on an equal footing with Big Tech'. UK Finance also welcomed the CMA's focus on digital wallet competition. Additionally, Adam Jackson of Innovate Finance stated that opening access could support competition and further fintech product innovation.
According to David Geale, Managing Director of the Payment Systems Regulator, the proposed changes to access and fees 'should create greater competition and more choice for consumers and businesses'. He added that the changes would support the expansion of open banking in the UK.
PayPal and the EU Comparison
The European Union provides a recent point of comparison. In 2024, Apple agreed to open NFC access to rival wallet developers in the EU. Six months later, Vipps launched the first alternative payment app. PayPal, Klarna, Curve and BBVA followed. PayPal began rolling out its first contactless digital wallet in Germany in May 2025, bringing a product known for its online checkout functionality into physical stores.
These launches show why access to Apple's payment technology is commercially valuable. PayPal has yet to launch plans to launch a similar wallet in the UK, although Global Competition Review reported that the company hopes to influence the CMA's proposals. The UK's plan is different from the EU deal, as UK firms might still need to pay for access, while it is free across the EU.
Competition among digital wallets already exists in online commerce, where businesses can choose which payment services to support. These range from major retailers and travel platforms to online casinos that accept PayPal. Contactless payments, however, work differently. Providers need access to technology built into smartphones, which is why the CMA's proposed changes focus on NFC access rather than online checkout.
What Could Change
The CMA said that if the requirement goes ahead, UK firms could offer similar payment services to those already offered in the EU. It also highlighted potential uses for the technology beyond payments, including digital IDs, travel passes, loyalty services and digital keys, although no specific products have been announced.
Bratby Law summarised the consultation, noting that banks and fintechs told the CMA that HCE products already developed for Android and EU iPhones could become available in the UK within two weeks to three months. Secure element products, by comparison, could take 12 months or more. These timelines are estimates rather than confirmed launch plans.
The consultation closes on 17 November 2026, and the CMA said it will assess all responses before reaching a final decision. The draft timetable summarised by Bratby Law states that any requirements would come into force three months after the decision is made. Additionally, Apple would have one month to submit an implementation plan.
