Apple Agrees With The European Commission To Offer NFC Payments Access

Apple has avoided paying huge fines to the European Commission (EC) by allowing third-party providers to use the NFC chip technology in iPhones for contactless payments. The EC made Apple’s promises enforceable under EU antitrust laws, settling the case and preventing a potentially massive fine worth billions of dollars.

Apple Has Settled With The European Commission And Avoided Huge Fine

The 10-year promise is mainly based on an offer Apple made in January. This offer lets payment services and third-party mobile wallets use the NFC feature on iOS devices through free APIs without needing to use an Apple Wallet or Apple Pay.

Apple plans to develop Application Programming Interfaces (APIs) that enable similar access to NFC components using Host Card Emulation (HCE) mode. This technology securely stores payment details and processes transactions without needing an internal secure element in the device.

According to the update, the agreement includes all mobile wallet application makers from the European Economic Area (EEA). It also comprises all iOS users with an Apple Identification registered in the EEA. Additionally, Apple won’t block these applications from being used for payment transactions in shops outside the EEA.

The Company Aims To Let Users Choose Their Favorite Payment Applications As Defaults

Apple plans to let users choose their favorite payment applications as defaults, use FaceID for security, and control notifications. These updates mean users can use payment applications on different certified devices, like store phones or other terminals.

The company revealed that developers don’t need a license or a formal agreement with a payment service provider (PSP) to use NFC. Moreover, Apple will let developers create NFC payment apps for other mobile wallets.

The European Commission stated that Apple’s final promises would solve its worries about Apple limiting other mobile wallet developers from using NFC payments in stores for iOS users in the EEA. It decided to enforce these promises on Apple by law.

Now that the situation in Europe seems resolved, Apple faces problems in the United States. The Justice Department has added access to NFC chip technology to its broad lawsuit against the company, accusing it of dominating the smartphone market.

Apple Inc. keeps changing the technology industry by inventing personal computers, computer software, smartphones, tablets, and accessories. It’s one of the most famous brands globally. The company made the first successful personal computer and introduced the graphical user interface (GUI) to many people for the first time.

The company boosted the technology industry by creating a marketplace for third-party app developers. They used this new system to make their products better and stronger.