Apple Pay is not going anywhere, but UK iPhone owners could eventually have more choice when paying with their phones. The Competition and Markets Authority (CMA) wants Apple to give rival payment apps better access to its contactless technology, with fees that would make competing services more affordable to develop.
The proposals unveiled on 20 October 2026 go beyond payments. They could also make it easier to develop digital car keys, travel passes, hotel access and other services that work when an iPhone is held close to a compatible reader.
There is no change to Apple Pay today. The regulator has opened a consultation, which closes on 17 November 2026, and will decide what to do after considering the responses.
What does the CMA want Apple to change?
The dispute centres on near field communication, or NFC. This is the short-range technology that lets a phone exchange information with a payment terminal, ticket gate or electronic lock. For an app developer, being able to use that technology reliably is essential. The price and conditions attached to access can be just as important.
Apple already allows approved developers in the UK to create contactless experiences through its NFC & Secure Element platform. That includes payment apps and supported uses such as car keys, transport credentials and loyalty programmes. Access requires an agreement with Apple and compliance with its eligibility and security requirements.
The CMA’s concern is that the present fees, contractual terms and technical arrangements can still make it difficult for other businesses to compete with Apple Wallet. Rather than simply asking Apple to unlock something it has never offered, the regulator is proposing changes to how developers obtain access and how much they may have to pay.
Two ways to make contactless payments
The proposals would require Apple to support both main approaches used for contactless services internationally: secure element (SE) and host card emulation (HCE). Apple currently offers the former in the UK. It stores sensitive credentials in protected hardware on the device; HCE handles contactless credentials differently, with data stored off-device.
For a bank or fintech already operating a wallet on another platform, having both routes available could remove an awkward technical hurdle. Developers would have more freedom to use a system suited to their product, rather than adapting everything to a single approved approach.
The CMA is not proposing a fixed new tariff. Instead, it wants access provided on fair, reasonable, transparent and non-discriminatory terms. It expects that approach to produce substantially lower charges than Apple currently applies, while allowing the company to be fairly compensated for providing access.
Lower charges would not necessarily make a coffee or train ticket cheaper. The immediate effect would be on the businesses trying to build these services. Whether any savings eventually reach customers would depend on what those companies launch and how they price it.
Why the UK contactless market matters
Contactless payments accounted for 39% of all payments in Britain in 2025, compared with just 3% a decade earlier, according to UK Finance figures cited by the CMA. That includes physical cards as well as phones; it is not an Apple Pay market-share figure.
The regulator also points to Which? research finding that 62% of UK adults use a digital wallet, with Apple Wallet the most popular. When that many people rely on contactless services, the terms governing access to a major smartphone platform have consequences well beyond the technology industry.
Businesses could potentially use wider NFC access for account-to-account payments, digital identification, age verification, workplace passes, hotel room keys and car access. Those are possible applications, not products announced for launch. A new service would still need developers, partners and customers willing to use it.
The CMA points to developments in the EU, where Vipps launched an alternative iPhone contactless payment app following Apple’s access commitments, with PayPal, Klarna and other providers following. British fintech Revolut has welcomed the UK proposals, arguing that wider NFC access could help businesses compete with established technology companies. The changes could also support open banking payments made directly between bank accounts, although no resulting UK service or launch date has been confirmed. According to the CMA, no comparable rival wallet has yet launched in Britain.
Apple and the CMA disagree over security
Apple maintains that its existing platform gives authorised third parties a secure way to offer contactless payments and credentials without relying on Apple Pay itself. In its response reported by Reuters, the company raised concerns that the proposed requirement could weaken privacy and security protections. It says it will continue engaging with the CMA.
The regulator says the evidence it has examined does not suggest that either SE or HCE has inherent security problems. Its argument is that allowing both would create more room for competition without ruling out strong safeguards.
That is an important distinction for anyone who uses a phone as a bank card or digital key. More choice will only be attractive if the alternatives are trustworthy, work consistently and make it clear how personal information is protected. Apple has a legitimate interest in that experience; the CMA believes its current commercial conditions restrict competition too far.
What would iPhone owners actually notice?
Nothing immediately. Cards already added to Apple Pay should continue working, and there is no instruction to switch wallets or change phone settings. Even if the proposals become requirements, a rival app would need to be developed and launched before customers could use it.
The longer-term appeal is straightforward: your bank might offer a contactless wallet of its own, or a transport company might provide a new type of tap-to-travel pass. Businesses could also bring more digital key and identity features to iPhone. It does not mean every app would gain unrestricted access or that Apple Wallet would be removed.
Apple’s ability to make its hardware and services work together is a major part of the Apple ecosystem. The challenge for any intervention is to let competitors offer worthwhile alternatives without turning a simple, dependable experience into a frustrating one.
When will the CMA decide?
Apple’s mobile platform was designated as having Strategic Market Status under the Digital Markets, Competition and Consumers Act 2024. That allows the CMA to consider targeted conduct requirements, but does not itself mean Apple Pay has broken the law.
Businesses and other interested parties can respond through the official NFC access consultation until Tuesday 17 November. The CMA will then review the submissions before making its decision. No implementation date, final access fees or UK rival-wallet launch dates have been confirmed.
Tech Torque Verdict
The strongest part of the CMA’s approach is that it tackles both sides of the problem. Rival services need workable technical access, but they also need commercial terms that leave enough room to build a business. Addressing only one would be unlikely to change much.
For iPhone owners, the promise is more choice rather than an immediate change to Apple Pay. If competing wallets, passes and keys can match the convenience and security people already expect, this could be a worthwhile opening of the market. Until developers can deliver those services, the benefits remain potential rather than proven.
