Apple Opens NFC Technology to Third-Party Developers

Third-Party Access to Apple’s NFC Technology

Apple has announced that it will open up the Near Field Communication (NFC) technology in its iPhones to third-party developers in European Union countries, as well as extending this access beyond the EU to other regions like the United States, offering third-party access to tap-and-pay features. This change will enrich the mobile payment experience by providing users with more options. Additionally, information regarding when this new implementation will take effect is available.

Apple reported that in the upcoming iOS 18.1 release, third-party developers will be able to implement their own contactless transaction systems through an API. This decision came after a “legally binding” agreement Apple made with the European Commission last month. The agreement was made to comply with EU regulations, particularly the Digital Markets Act (DMA). This is the result of a four-year investigation that found Apple responsible for restricting access to its core payment technology for competing mobile wallet developers.

With the launch of iOS 18.1, developers will be able to offer contactless payments and other transactions using the Secure Element utilized by Apple Pay on the iPhone. The Secure Element is a specialized chip designed to store sensitive information accessed through the Secure Enclave, which processes encryption and biometric data. NFC technology is not limited to just tap-and-pay systems; it can also manage various functions such as digital car keys, public transport cards, compatible home locks, hotel keys, student IDs, event tickets, and retail loyalty and reward cards. Apple indicates that official IDs will also be supported in the future.

When developers launch NFC applications, they will be able to use the secure hardware by either directly opening the app or setting third-party software as the default contactless application in iOS settings. If an app is set as the default, the Apple Pay API will initially be available in the US and EU regions, as well as in Australia, Brazil, Canada, Japan, and New Zealand. However, for developers to use this payment option, they will need to make a commercial agreement with Apple, request NFC and Secure Enclave permissions, and pay the relevant fees. Of course, Apple Pay and Apple Wallet options will continue to be available.