The regulator says Apple's grip on iPhone payments is keeping challengers from going head to head with Apple's wallet. Its proposal would open access to the iPhone's contactless function - near field communication, or NFC - and do so at a "substantially lower fee."
The plan follows concerns about high charges and limits on access to iPhone contactless capabilities. In plain English: easier entry and cheaper access to NFC for competitors.
This push sits within a wider probe that began after the CMA labeled Apple as dominant in the mobile ecosystem. The watchdog had also previously concluded Apple and Alphabet Inc.'s Google effectively hold a duopoly over mobile platforms, prompting both to offer changes on iOS interoperability and fairer treatment for app developers.
The CMA put it bluntly: "Fintechs are a UK success story, but Apple's fees and access rules for key mobile contactless technology, known as near field communication, risk blocking their ability to innovate and grow," adding, "Unlike in the EU, not a single firm has launched a wallet-type product to compete with Apple's in the UK." UK authorities have been seeking more rivalry among digital wallets and encouraging account-to-account payments that do not rely on Visa Inc. or Mastercard Inc.
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Apple pushed back, saying, "Apple has made it possible for developers in the UK and around the world to securely offer contactless transactions directly within their apps," and, "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections."
Revolut's chief commercial officer David Tirado welcomed the direction: "Opening up this infrastructure is a critical step toward driving genuine competition," adding, "The CMA's direction creates a real opportunity for UK fintechs to compete on an equal footing with Big Tech." The CMA plans to collect feedback on the proposals through Nov. 17, and a final decision will come afterward. If finalized, the move would be a tailwind for firms like PayPal, Revolut and Monzo.
Digital payments keep gaining share. Contactless hit 39% of all card transactions in 2026, up from 3% a decade earlier, and a UK Finance study says more than 60% of UK adults use digital wallets. The strategic market status designation does not allege wrongdoing, but it does mean tighter oversight and conduct rules - and that can shift the economics of platform access. The bottom line: more open NFC on iPhone would widen the addressable market for UK payment apps while challenging Apple's take on in-app tap-to-pay.
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