The United Kingdom’s competition regulator is pushing Apple to open up its contactless payment technology to rival companies and significantly reduce the fees charged to businesses using the system.
The Competition and Markets Authority (CMA) says Apple’s existing rules and charges are making it difficult for financial technology firms to develop new products and compete in the UK market.
The proposed changes could allow smartphone users to access more payment applications, digital travel passes, identification services and digital keys directly through their devices.
The regulator is also consulting on measures that would require Apple to grant competing applications access to Host Card Emulation (HCE), a widely used technology that enables contactless payments without relying on Apple’s current payment arrangements.
According to the CMA, the restrictions are limiting innovation in Britain’s financial technology sector, which generates more than £214 billion in annual turnover and supports over 360,000 jobs.
CMA Chief Executive Sarah Cardell said removing barriers to entry could create opportunities for British businesses to develop new products and services.
However, Apple has defended its existing system, arguing that it allows developers and banks to offer contactless transactions while maintaining strong privacy and security protections.
The technology company warned that forcing it to adopt an alternative approach could weaken safeguards for sensitive user information. Apple also maintains that its current arrangements support competition and do not prevent developers from introducing innovative services.
The UK proposal follows changes in the European Union, where Apple was required to widen access to certain technologies. Several alternative payment services, including PayPal, Klarna and Curve, subsequently introduced wallet-related offerings in the European market.
The CMA says its approach would focus on specific aspects of Apple's technology rather than requiring the broader changes introduced in the EU.
The regulator is not proposing to directly set the prices Apple can charge, but believes increased competition and improved access could bring fees down.
The consultation could shape the future of digital payments in the UK, potentially giving consumers more choices while intensifying the debate over competition, privacy and security in smartphone technology.
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