Apple unveils iPhone NFC for mobile payment in the European market

Discover how Apple‘s decision to unlock iPhone NFC technology in Europe will impact mobile payments, and competitiveness in the market, and influence user choices.

Introduction:

Apple is set to share its Contactless Payment System with competitors in Europe. This decision was made due to firms’ pressure from the European regulators as a way of boosting competitiveness and option demand.

A Regulatory Pressure & Alteration:

The European Commission revealed that Apple has declared it will permit the use of Near-field communication (NFC) on iPhones to third-party mobile wallets. This action is a response to the regulation pressure, under which Apple operates in the European Union concerning the smartphone’s mobile payment command.

Effect iPhone Consumers:

iPhone users of Europe will thus be in a position to freely use their preferred mobile wallet for the contact of payments. Such a change allows users to gain access to any iPhone functionality such as tap and go, two-click, and Face ID with a preferred wallet.

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Implementation and Duration:

Apple has up to July 25, to effect these changes. It will last for ten years, and it will be valid in all the thirty countries forming the European Economic Area. This agreement preserves third-party developers’ rights to continue using near-field communication technology into the future.

Third-party mobile wallet developers will benefit as they get free access to the NFC chips on iPhones. Apple said that such access will be applicable across numerous applications matters such as car keys, transit passes, company badges, event tickets, and more from within iOS apps.

Apple’s Previous Practices:

Earlier, through a probe, the European Commission established that Apple violated set laws by limiting access to NFC technology. This restriction made the iPhone owners select Apple Pay as their payment method for mobile payments eliminating other players in the market.

Availability of Information With these changes the other competing mobile wallets can freely launch into the market and provide more options to the consumers. It will also create a development that will lead to invention and ensure that the users have safe and multiple payment options available to them.

Omission of Apple Watches:

New commitments bear no mention of Apple Watches. The European Commission still pointed out that few users pay through the Apple Watches and thus, the effect of Apple’s exclusion from BPC is not significant.

Conclusion:

Apple has changed its approach to mobile payments in Europe by opening iPhone NFC to third-party mobile wallets. However, this change will only improve competition bring about innovation, and provide consumers with more options and ease regarding payment methods.

Image Credit: Apple