Apple Pay faces UK crackdown that could change iPhone tap-to-pay

Date:
Wed, 21 Oct 2026 12:57:06 +0000

Description:
The UK government is proposing new rules to encourage Apple Pay rivals to operate in the country.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter The UK government wants more Apple Pay alternatives for consumers Its proposing opening the technology up to other companies It also wants Apple to charge lower fees for access If you pay for an item using the contactless tech on any of the best iPhones , youre locked into Apple s way of doing things. But the UK governments competition regulator the Competition and Markets Authority (CMA) is proposing new
rules that could blast open the way you pay using your iPhone.

According to a press release on the UK government website, the CMA believes that Apples fees and rules are blocking UK fintechs and other businesses from innovating and growing and that its proposed changes are expected to result
in substantially lower access fees, helping make it commercially viable for more businesses to innovate and compete. The CMA pointed out that no rivals
to Apple Pay exist in the UK, as opposed to in the EU, where several alternatives can be used. The CMA believes this is due to both high fees charged by Apple and restrictions placed on certain technology by the Cupertino giant. Latest Videos From TechRadar Watch full video here:

For instance, while Apple allowed third-party companies to offer Apple Pay alternatives in the UK back in 2024, one condition was that these firms had
to use Apples Secure Element, which encrypts important payment card information during transactions.

In the EU, however, European Union-wide rules mean that Apple must let companies use host card emulation (HCE) for free instead of the Secure Element, if they wish. The CMA wants that kind of technology to be available in the UK and says it does not believe that doing so would raise any inherent security concerns. You may like The Apple Upgrade program is great for consumers and Apple, but bad for carriers like Verizon and AT&T here's why Apple has added persistent ads to iOS, and its driving users crazy UK government considers extending BBC license fee to streaming services

Commenting on the CMAs move, Mattias Eld, CEO & Co-founder at contactless
firm Fidesmo, said: Buying an iPhone should not mean handing Apple the keys
to your wallet. Consumers should rightly choose how they pay, and banks
should choose who they work with. But for over a decade Apple has honed its domination over tap-to-pay, through the careful and deliberate stifling of
its competitors. This has allowed Apple to charge banks inflated transaction fees, with the threat of exclusion from such a vast market leaving them
little choice but to pay. Apple pushes back (Image credit: Apple) The CMA
says that while it isnt seeking to dictate the prices or terms that Apple
must set, it wants to propose principles for how this should be determined, with the expectation that charges would be substantially lower than Apples current fees while still fairly rewarding Apple for providing access. Get daily insight, inspiration and deals in your inbox Sign up for breaking news, reviews, opinion, top tech deals, and more. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

However, Apple has pushed back against the CMAs proposals, telling Reuters that We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections. We will continue to engage constructively to reach an outcome that is in the best interest of our users.

Why does Apple restrict access to contactless payment tech? One answer might simply lie in the almighty dollar: as with the App Store , Apple charges third-party firms for access and likely doesnt want to give up that revenue stream.

Im not entirely convinced that thats the main reason, however after all, Apple is one of the wealthiest companies on the planet and makes huge profit margins on every product it sells. Is nickel and diming really such a core strategy when its iPhone revenue alone jumped 21% to $54.25 billion in the third quarter of 2026? What to read next No wallet? No problem - Revolut's
new till will let UK customers pay with a smile Apple's plan to sidestep the RAM crisis could be renting Macs to consumers 'If you cant buy it, you cant afford it' why not everyone is buying Apple's new iPhone leasing offer Analysis: Apple fears it could pay the price To me, a stronger argument centers on something else: control. This has been an obsession for the
company since the days of Steve Jobs, and Apple is acutely, painfully sensitive to how its products are perceived.

If Apple loosened its grip on something so vital to the user experience as payments and financial services and a third-party contactless provider then got hacked or scammed customers, Apple fears that that will reflect badly on itself as a company. For the perfectionists at Apple, anything that lessens the user experience due to Apples actions is an absolute no-go. By taking payments entirely under its own aegis, Apple reassures itself that nothing will go wrong.

Theres a degree of logic to that. Apple has proven its security credentials and works harder than many companies to keep its systems incredibly safe. Going with a third-party means trusting someone else whose track record might not be as strong. But that certainly doesnt mean that only Apple can
safeguard your payment information or indeed that only Apple should be allowed to even try.

If the CMA gets its way, Apple might be forced to change its ways. The
company has already been forced to crack open its contactless walled garden
in the EU, and the UK might soon follow. The way you pay using your phone might look very different as a result. Follow TechRadar on Google News and
add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Todays best iPhone deals Contract Deals Sim Free voucher gift Apple iPhone 18 Pro 48 months Unlimited mins 25GB data 30 upfront 69.03 /mth View at EE See all prices gift Apple iPhone Duo 24 months Unlimited mins Unlimited texts 100GB data 299 upfront 76.99 /mth View at Mobiles.co.uk See all prices voucher gift Apple iPhone 18 Pro Max 48 months Unlimited mins 25GB data 30 upfront 57.73 /mth View at EE See all prices gift Apple iPhone 17 24 months Unlimited mins Unlimited texts 10GB data 36 upfront 36.99 /mth View at Mobiles.co.uk See all prices voucher gift Apple iPhone 17e 48 months
Unlimited mins 5GB data 30 upfront 37.92 /mth View at EE See all prices voucher gift Apple iPhone Air 48 months Unlimited mins 30GB data 30 upfront 44.49 /mth View at EE See all prices We check over 250 million products every day for the best prices



======================================================================
Link to news story: https://www.techradar.com/computing/payment-services/apple-pay-faces-uk-contac tless-crackdown-new-rules-could-change-iphone-tap-to-pay-and-pave-the-way-for- nfc-rivals


--- Mystic BBS v1.12 A49 (Linux/64)
* Origin: tqwNet Technology News (1337:1/100)