Apple opens up its tap-to-pay mobile payments system to rivals in Europe

This is a rare move from Apple, which has long resisted scrutiny of its business by the EU competition authority. Apple is currently facing three other investigations under the Digital Markets Act (DMA) related to its business practices.

Under the agreement with the EU, Apple's opening of the tap-to-pay mobile payment system will be valid for 10 years. There are currently more than 3,000 banks and issuers in Europe that offer Apple Pay.

EU Competition Commissioner Margrethe Vestager welcomed Apple’s decision, saying that rivals will now be able to compete effectively with Apple Pay for in-store mobile payments using iPhones, giving consumers more secure and innovative mobile wallet options.

Apple's tap-to-pay mobile payment technology uses near-field communication (NFC) to enable contactless payments using mobile wallets. Now, Apple will let developers access its NFC to pre-build payment apps for rival mobile wallet providers.

Apple says the move will give European developers the option to enable tap-to-pay for car keys, corporate cards, house keys, hotel keys, merchant rewards/offers, and event tickets from within their iOS apps.

In 2022, the EU competition regulator accused Apple of hindering competition for its Apple Pay mobile wallet by blocking rival app developers from accessing its tap-to-pay mobile payment technology.

In January, Apple offered to settle the case to avoid being fined and found guilty of infringement. In March, Apple was fined €1.84 billion, the EU’s first antitrust penalty, for stifling competition from Spotify and other music streaming rivals through restrictions on the App Store.