European Regulators Will Soon Approve Apple's Plan to Open Up Tap-to-Pay to Banks and Payment Providers

[MacRumors]

As part of the changes introduced in Europe in iOS 17.4, Apple gave third-party payment apps and banks direct access to the NFC chip, allowing for non-Apple Pay tap-to-pay payment options. The European Commission is set to approve Apple's plan to open up tap-and-go mobile payments "as soon as next month," according to Reuters.

With NFC access, banks and third-party payment apps can offer contactless payments directly on the iPhone without having to use the Wallet app or Apple Pay. This feature is available in the European Economic Area, and it lets EU users set a default non-Apple wallet app and default contactless payment provider that activates at tap-to-pay terminals or when the iPhone's side button is pressed twice.

The European Economic Area (EEA) is the only area where Apple has opened up NFC access, and developers in other countries cannot access the iPhone's NFC chip for tap-to-pay purposes. Customers will be able to use NFC-enabled apps from their banks and other payment providers with no involvement from Apple.

Apple has long limited the NFC chip in the iPhone and other Apple devices to Apple Pay payments, which has prevented banks and other financial services from providing their customers with direct contactless payment solutions on the iPhone.

Apple first announced plans to open NFC payment technology to third-party developers in Europe in January, and Apple made the change in order to address antitrust charges it was facing from the European Commission (EC). The EC has accused Apple of limiting competition by preventing rival mobile wallets from accessing the NFC chip, and Apple's decision to open it up will prevent fines and other penalties.

Article Link: European Regulators Will Soon Approve Apple's Plan to Open Up Tap-to-Pay to Banks and Payment Providers

 

[boak]

More fragmentation incoming, just like with alternative app stores

 

[sw1tcher]

More fragmentation open competition and user choice incoming, just like with alternative app stores

Fixed that you

 

[Freakstyles]

More fragmentation incoming, just like with alternative app stores

Yep, and I wonder how many of these banks are going to start shutting off access to Apple Pay for their own solution. I know chase in the US tried their own thing for a long time and it didn't take, I con only imagine what they would do if apple was forced to give them access to the NFC chip. I don't understand why they need separate access any way, if they work with Apple Pay doesn't those transactions still flow through them.

 

[madmin]

Bunch of merchant bankers 🙄

 

[Freakstyles]

Fixed that for you

More half baked solutions allowing your data to get "Stolen" and sold on the market, just like with alternative app stores

 

[GrayFlannel]

More fragmentation incoming…

Sounds like a negative and you disapprove. Would you mind expanding on why?

 

[sw1tcher]

Sounds like a negative and you disapprove. Would you mind expanding on why?

Some people don't want Apple to have competition because it can hurt Apple's profits and therefore the stock price.

Others probably support the idea of users having fewer choices and think it's cool that some countries can decide what apps their citizens are allowed to use

China orders Apple to remove Meta apps after “inflammatory” posts about president

WhatsApp, Threads, Telegram, and Signal removed from Apple App Store in China.

arstechnica.com

https://www.reuters.com/technology/apple-removes-whatsapp-threads-china-app-store-wsj-reports-2024-04-19/

 

[Robert.Walter]

I expect banks to implement it with less security, more intrusion, less convenience and to add insult to injury eventually blocking Apple Pay.

Sooner Apple adds a global bank or credit card company the better.

 

[rootbeerdan]

EU looking out for the poor multinational banks who couldn't afford to compete with Apple

 

[Freakstyles]

Some people don't want Apple to have competition because it can hurt Apple's profits and therefore the stock price.

Others probably support the idea of users having fewer choices and think it's cool that some countries can decide what apps their citizens are allowed to use

China orders Apple to remove Meta apps after “inflammatory” posts about president

WhatsApp, Threads, Telegram, and Signal removed from Apple App Store in China.

arstechnica.com

https://www.reuters.com/technology/apple-removes-whatsapp-threads-china-app-store-wsj-reports-2024-04-19/

you can look at it from two perspectives, the more points of entry for user data could mean more weaknesses, or you can have one area to protect.

or having one point to protect means only one point to attack. I personally like the idea of fortifying one Point of entry then having to worry about if someone else left the back door open.

 

[madmin]

EU looking out for the poor multinational banks who couldn't afford to compete with Apple

EU banks have had their politicians under the thumb for centuries

 

[sw1tcher]

I expect banks to implement it with less security, more intrusion, less convenience and to add insult to injury eventually blocking Apple Pay.

Yeah, I see the banks shooting themselves in the foot by doing those things too, resulting in their customers choosing to not use their wallet/payment app. Yup, it totally makes sense.

 

[flexwithmarius]

Real question: who asked for this? Apple? Banks? Customers? The government?

Contactless payments are contactless payments at the end of the day. Not much to innovate on. Banks already have ways to tracking your purchases and offering incentives (like Chase Offers, for example).

My guess is this is yet another solution in search of a problem that someone cried to the government about with no real demand/necessity.

 

[CapitalIdea]

Yeah, I see the banks shooting themselves in the foot by doing those things too, resulting in their customers choosing to not use their wallet/payment app. Yup, it totally makes sense.

Yeah, large businesses would never be that stupid, and try to do their own hackneyed thing despite the incredible inconvenience for customers. After all, they would never drive away potential sales. And of course, any large business that services huge numbers of customers would be too smart to buck the clear market and customer preference for the sake of data harvesting competition.

 

[CapitalIdea]

Real question: who asked for this? Apple? Banks? Customers? The government?

Contactless payments are contactless payments at the end of the day. Not much to innovate on. Banks already have ways to tracking your purchases and offering incentives (like Chase Offers, for example).

My guess is this is yet another solution in search of a problem that someone cried to the government about with no real demand/necessity.

The banks did. They tried to force this against Apple Pay in Australia years ago and refused to get on board with the platform, because they wanted that sweet, sweet usage data a closer relationship with their customers.

 

[Ridge Racer]

Every bank will have their own wallet app eventually (they're hardly going to join forces) that works and looks different, and instead of simply double-tapping the side button to open a single Wallet and swiping to switch cards when making a purchase, you'll have to unlock your phone, locate the specific bank wallet, then open that to select your payment card. Far less user-friendly.

No doubt they'll be tracking your purchases much more closely, probably other data too.

Personally, I prefer a single, universal Wallet app that isn't provided by any particular bank.

 

[Sophisticatednut]

Real question: who asked for this? Apple? Banks? Customers? The government?

Contactless payments are contactless payments at the end of the day. Not much to innovate on. Banks already have ways to tracking your purchases and offering incentives (like Chase Offers, for example).

My guess is this is yet another solution in search of a problem that someone cried to the government about with no real demand/necessity.

Just about everyone asked for it from businesses, banks and customers.

Many public transportation apps in EU don’t exist in the Apple wallet( does even one have apple wallet?)

Especially where physical cards are largely depreciated in favor of a QR code in the app, or physical tickets being purchased.

 

[flexwithmarius]

Fixed that you

User choice is a mere illusion when you realize that payments are all pretty much the same:

It’s either thru a magnetic stripe (old fashioned) or tokenized (“chip” or contactless), with a last resort of typing in the card numbers by hand.

Online payments are even more identical: type the numbers in or store in a wallet (tokenized).

Pretty much every wallet (Apple Pay/Google/Etc. is a brand name of tokenized payments.

Anything beyond these basic methods relies on relays or some sort of backend conversion (like how Target RedCard works: use a middleman card that then runs an ACH draft).

 

[flexwithmarius]

Just about everyone asked for it from businesses, banks and customers.

Many public transportation apps in EU don’t exist in the Apple wallet( does even one have apple wallet?)

Especially where physical cards are largely depreciated in favor of a QR code in the app, or physical tickets being purchased.

Yet China, Japan, Hong Kong and major metros in the US figured out how to integrate it just fine.

One major problem with QR codes: when your phone dies you’re screwed. That’s why Wallet has express transit mode and that’s something only NFC can offer. NFC is far more convenient than QR codes ever will be.

 

[Sophisticatednut]

Every bank will have their own wallet app eventually (they're hardly going to join forces) that works and looks different, and instead of simply double-tapping the side button to open a single Wallet and swiping to switch cards when making a purchase, you'll have to unlock your phone, locate the specific bank wallet, then open that to select your payment card. Far less user-friendly.

No doubt they'll be tracking your purchases much more closely, probably other data too.

Personally, I prefer a single, universal Wallet app that isn't provided by any particular bank.

Well not likely. In EU we actually have a lot of cooperations between the banks across EU…

And guess who is mandating such interoperability?

EU is responsible for we having a singular eID across national banks, and soon cross border etc etc.

Heck even EU made sure we can use the national driver license to verify who we are and use of NationalID to fly planes etc.

 

[Sophisticatednut]

Yet China, Japan, Hong Kong and major metros in the US figured out how to integrate it just fine.

View attachment 2369943

I know, I use Suica all the time when I’m in Japan, but it also works as a debit card… so perhaps that’s why? I can only say irrespectively of the reason why the result is I still can’t use Apple wallet or something similar here for my public transport 🤷‍♂️

Edit: and even the USA you seem to only have 3 cards for 3 different cities/regions. So still kind of useless I would say.( unless you can use it anyway in the USA just like the Japanese Suica cards.

 

[flexwithmarius]

I know, I use Suica all the time when I’m in Japan, but it also works as a debit card… so perhaps that’s why? I can only say irrespectively of the reason why the result is I still can’t use Apple wallet or something similar here for my public transport 🤷‍♂️

Edit: and even the USA you seem to only have 3 cards for 3 different cities/regions. So still kind of useless I would say.( unless you can use it anyway in the USA just like the Japanese Suica cards.

I’d guess most people will just use
the one that’s in their city. And it’s pretty easy to generate a new Wallet metro card (including loading funds) right in the app so you can have the card in hand before your trip.

Honestly the transportation authorities there should get on it. These features have been out for a while. Just comes down to them wanting to do their own thing. Google wallet supports the transit cards too so it’s not just an Apple thing.

 

[hans1972]

Fixed that you

Nope, here in Norway, banks are removing support for Apple Pay and introducing their own system which almost all banks stand behind.

 

[flexwithmarius]

Every bank will have their own wallet app eventually (they're hardly going to join forces) that works and looks different, and instead of simply double-tapping the side button to open a single Wallet and swiping to switch cards when making a purchase, you'll have to unlock your phone, locate the specific bank wallet, then open that to select your payment card. Far less user-friendly.

No doubt they'll be tracking your purchases much more closely, probably other data too.

Personally, I prefer a single, universal Wallet app that isn't provided by any particular bank.

As nihilistic as I am about them opening up payments, I don’t see it happening.

NFC/Tap/Apple Pay/Google Pay is so heavily marketed and used nowadays. When it was in its infancy, I’d argue otherwise.

Banks are not going to block access to Apple Pay provisioning and disable cards. Clients would be royally p*ssed and probably close their accounts. Taking away conveniences rarely goes well.

That said, American users: keep an eye on Early Warning Systems and their Paze system. EWS has a very, very close relationship with banks in the US. They are the company behind Zelle.

Paze for Business | Merchant Payment Solutions

Support sales growth and build stronger customer relationships with the bank wallet from Paze: Seamless integration, simplified checkout, 150+ million cards.

www.paze.com