UK regulator wants to require Apple to lower access fees — Channel NewsAsia

In the United Kingdom, the Competition and Markets Authority (CMA) has proposed requiring Apple to lower fees for access to contactless payment technology and remove technical barriers for Apple Pay competitors. As Channel NewsAsia reports, the regulator believes this would make it easier for digital banks and other payment services to enter the market.

Access for alternative wallets

The CMA said the proposed measures provide for “substantially lower” fees for access to Apple’s contactless technologies. The regulator noted that high charges, strict terms and technical restrictions make it difficult for competitors to develop new products and compete with Apple Pay.

CMA Chief Executive Sarah Cardell said the changes could foster innovation, expand user choice and support the UK fintech sector. According to her, easier access could enable the development not only of payment apps, but also digital IDs, transit tickets and digital keys.

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Apple’s position and consultations

The British regulator’s proposals are less stringent than the European Union’s requirements introduced in 2024. They included, in particular, free access for third-party developers of digital wallets. The CMA said that following this, alternative payment apps were launched by Vipps, PayPal, Klarna, Curve and BBVA.

Apple said it already allows developers to offer contactless payments in their apps through NFC and the secure element, where sensitive data, including card details and cryptographic keys, are stored. The company stressed that it does not consider it necessary to introduce an approach with a lower level of privacy and security protection.

The CMA will accept comments on the proposals until November 17, after which it is due to make a final decision. According to the regulator, contactless payments account for 39% of all payments in the country, compared with 3% ten years ago, while more than 60% of British adults use digital wallets.