Instead of using only Apple Pay to hold over terminals from stores to complete a payment, Apple is now offering the iPhone's NFC to be available for developers to utilize for their respective apps. This will now open up alternatives to Apple Pay, with the NFC available for third-party payment platforms for tap-to-pay experiences after many years of holding out.
This old feature that Apple made only accessible now is due to the European Union's Digital Markets Act, but would only be available for the region.
iPhone NFC is Now Available to Use for Other Payment Apps in the EU
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Apple's latest announcements regarding the changes coming to the iOS amid the Digital Markets Act's law taking effect center on an important change for the iPhone NFC and Apple Pay. The Cupertino giant said that it will also share DMA-compliant changes that will affect its contactless payment options through the use of its NFC technology for third-party platforms.
This means that Apple will offer new APIs that will allow other developers to use iPhone's NFC technology for their respective banking and wallet apps, but only for the EU region.
Apple Pay to See Competition After Exclusive Use of NFC
On the upcoming iOS 17.4 update, Apple will bring said contactless payment transactions through the iPhone's NFC, and this moves away from the exclusivity of the feature to the Apple Pay and Wallet service.
Users will be able to initiate payment transactions from a third-party banking or wallet app at compatible NFC terminals, including mobile devices. Users can manage their preferred default contactless payment app through a new setting for contactless payments and launch the default contactless payment app by double-clicking the side button or when iPhone detects an NFC field at compatible terminals.
The Apple Pay Platform and the iPhone's NFC
Apple Pay has been among the famous payment channels for mobile platforms for a long time now, and it is best known as the iPhone and Apple Watch's exclusive contactless payment feature.
There were specific promotions and perks available for Apple Pay customers for certain retailers, and the company brings these offers from time to time for customers to enjoy.
With the iPhone's NFC chip best known to be available for a long time now, the Apple Pay and the Wallet app were the only platforms to fully utilize what this technology brings for the smartphone. It was made available to use as a bus pass, and on more recent updates, it to store driver's licenses from select states and for identification cards for schools.
However, those who want to use the tap-to-pay feature would have to partner with Apple and have their cards available to add via the Wallet app, with the companies required to have these collaborations.
That now is changing thanks to the EU's DMA, as Apple claims that come iOS 17.4, the NFC chips would open up on third-party payment channels to use it on the iPhone, but only for the region.
