CMA proposes requiring Apple to open iPhone NFC to host card emulation

The Competition and Markets Authority (CMA) on 20 October 2026 opened a consultation on a proposed conduct requirement under the Digital Markets, Competition and Consumers Act 2024. The requirement would oblige Apple to give businesses access to the iPhone's near field communication (NFC) technology through both main contactless standards used internationally: secure element (SE), which stores information on the device, and host-based card emulation (HCE), which stores data off it. Apple currently offers only SE in the UK. The proposal follows the CMA's designation of Apple as having Strategic Market Status in relation to its mobile platform. It is not yet a decision.

For banks, payment firms and fintechs, the proposal would open two things in the UK: a second technical route to the iPhone's contactless function, and pricing principles intended to make that access affordable. The CMA says it has heard from UK businesses that Apple's arrangements "may not be commercially viable", that fees and other terms "may be onerous", and that different technical approaches across jurisdictions and platforms make it harder to scale. The Financial Conduct Authority (FCA) backed the proposal. David Geale, its executive director for consumers, payments and competition, said that "improved access and substantially lower fees should create greater competition and more choice for consumers and businesses", and that opening the technology "will also support the expansion of open banking, enabling more people to make payments directly from their bank accounts."

Two standards, not one

Neither HCE nor SE was developed by Apple. Both are established technologies used across mobile ecosystems. The CMA says evidence it has seen "suggests that neither technology raises inherent security concerns". It adds that access to both would support the widest range of use cases and let UK firms roll out payment services already offered in the EU.

The CMA lists account-to-account payments, digital IDs and age-verification tools, travel passes and tickets, car, hotel and workplace keys, and loyalty services as products better access could enable. Sarah Cardell, the CMA's chief executive, said: "We have heard that high fees, strict terms, and technical restrictions relating to Apple's contactless technology make it too difficult for challengers to innovate and compete."

Principles rather than a price

The CMA states that it "is not proposing to set the price and terms of contactless functionality access". It has instead proposed principles for how the price should be determined. It expects these to produce charges substantially lower than Apple's current fees "while still fairly rewarding Apple for providing access". It describes this as consistent with its proportionate approach to intervention and with the principles in the digital markets legislation.

In our view, the pricing principles will do more than the technical mandate to decide whether UK firms build on the iPhone. The CMA itself says high fees can prevent viable products even where technical access exists.

No UK rival wallet yet

The CMA contrasts the UK with the EU. Six months after Apple agreed to provide NFC access for payments in the EU, Vipps launched the first alternative payment app, followed by PayPal, Klarna, Curve and BBVA. In the UK, "not a single firm has launched a wallet-type product to compete with Apple's".

The CMA's market data show what is at stake. It cites UK Finance figures putting contactless payments, by card or mobile device, at 19.2 billion in 2025. That was up 2% and made up 39% of all payments, against 3% a decade earlier. It cites Which? research finding that 62% of UK adults use a digital wallet, with Apple Wallet the most popular at 50%. PaymentExpert reported that the proposals respond to complaints from UK companies about Apple's NFC access terms.

The consultation closes on Tuesday 17 November 2026. The CMA says it will make a final decision after assessing responses.