CMA Proposes Lower-Cost Access to iPhone Payment Technology
The Competition and Markets Authority published proposals on Tuesday that would compel Apple to grant UK developers access to its iPhone contactless payment infrastructure at significantly reduced fees. The regulator argues that Apple's current pricing and access conditions are preventing British fintech companies from building rival digital wallet services. According to the CMA, no firm has yet launched a wallet to rival Apple's in the UK.
Under the proposed conduct requirement, Apple would be obligated to offer host-based card emulation (HCE), a technology that processes payment data off the device rather than storing it locally. Currently, UK developers are restricted to the on-device secure element (SE) approach. The CMA stated it would not set specific price levels itself but expects the resulting charges to be "substantially lower" than what Apple currently charges, though it declined to publish the existing fee structure.
Notably, the UK proposal falls short of the European Union's more generous terms. While Brussels granted rival wallets free access to tap-and-pay functionality, the CMA expects Apple to continue charging a fee for access. However, the regulator noted that offering both HCE and SE standards would enable UK firms to deploy payment services that are already operational in the EU.
Brokers Already in Payments Could Benefit Directly
The proposal has direct relevance to the growing number of trading firms that have expanded into consumer payments. Trading 212 launched multi-currency payment cards in May 2024, joining eToro, Equiti, and XS in offering card-based products to retail traders. Under the CMA's framework, UK-based firms in this space could potentially seek the same NFC access to embed tap-to-pay functionality directly within their proprietary applications, reducing their dependence on third-party wallet ecosystems.
The CMA also identified a broader range of services that wider access to iPhone payment technology could support, including digital identity verification, travel passes, digital keys, and account-to-account payment transfers — capabilities that brokers and fintechs increasingly bundle with their core trading platforms.
EU Precedent: Five Rival Wallets Launched Since 2024
The UK proposal mirrors a process the European Commission began in 2020 when it opened its own case against Apple's control over iPhone payments. In January 2024, Brussels put Apple's offer to open its NFC chip to market testing, and six months later formalized the commitments as binding, effectively giving competing wallets free access to tap-and-go payments.
The results have been rapid. Norway's Vipps became the first non-Apple wallet to go live on iPhones in December 2024. PayPal entered the market in Germany, and London-based Curve rolled out Curve Pay on iOS across the European Economic Area in May 2025. Klarna and BBVA have also launched their own iPhone wallet offerings in the EU. In November 2025, Lloyds Banking Group agreed to acquire Curve, underscoring the strategic value of embedded payments in the European market.
Apple Pushes Back on Security Grounds
Apple has resisted the CMA's approach, with a spokesperson arguing — as reported by Reuters — that the regulator should not compel the company to "adopt an approach with lower privacy and security protections." Apple maintains that it has already made contactless payment capabilities available to developers through its NFC and secure element infrastructure, a pathway that opened to UK developers in 2024 but requires a commercial agreement with the company.
The company also faces a parallel legal challenge in the United States, where a coalition of credit unions filed suit in 2023 over Apple's exclusive control of iPhone tap-to-pay functionality.
Regulatory Backing, Market Data, and Timeline
The Financial Conduct Authority has voiced support for the CMA's proposals. David Geale, the FCA's executive director for consumers, payments and competition, stated that opening up the technology would "support the expansion of open banking." The FCA and the Payment Systems Regulator had begun a joint examination of how the rapid growth of digital wallets is affecting consumers and businesses back in July 2024.
The legal basis for the CMA's action stems from its October 2025 finding that Apple holds "substantial and entrenched market power" over its mobile platform, a designation that allows the regulator to impose conduct requirements under the Digital Markets, Competition and Consumers Act 2024.
The CMA conducted a public call for evidence on iPhone NFC access during June and July, and the formal consultation period closes on November 17. The regulator indicated it would issue a final decision following the close of the consultation.
The momentum behind digital payments in the UK is substantial. According to UK Finance data cited by the regulator, contactless transactions accounted for 39% of all UK payments in 2025, a dramatic rise from just 3% a decade earlier. A separate Which? survey found that 62% of UK adults now use a digital wallet, with Apple Wallet commanding a 50% share as the most popular option. In the broader UK banking landscape, institutions have worked within Apple's existing wallet framework; Monzo became the first British bank to offer monthly recurring payments through Apple Pay in September 2024, illustrating the current limitations of the ecosystem for non-Apple platforms.
Sarah Cardell, the CMA's chief executive, framed the proposals as a catalyst for broader economic benefit, stating that they "open the door to more innovation, more choice and economic growth." She attributed the current lack of competition to "high fees, strict terms, and technical restrictions" that have made it prohibitively difficult for challengers to enter the market.
