UK pressure reportedly forces Apple to open iPhone contactless payments to rival services

Apple’s iPhone contactless payment setup could be in for a change after a UK regulatory push that, according to a report published Monday, would require Apple to let rival payment services operate on iPhones. The report said the measure is part of a broader crackdown aimed at reducing gatekeeping in payments, where Apple has historically controlled the path from a phone’s near-field communication (NFC) hardware to the end payment experience.

For customers, Apple Pay is the familiar branded route to tap-and-pay on supported iPhones, with Apple acting as the intermediary layer between the payment terminal experience and the underlying bank or card networks. For merchants and payment providers, the closed loop has often meant that new payment flows must be designed to fit within Apple’s standards and approvals, rather than being deployed independently through the device’s contactless interface.

The Yahoo Finance report, carried by the publication’s link to the UK newspaper the Telegraph, frames the coming requirement as an obligation for Apple rather than a voluntary expansion. In other words, the change would not simply be Apple broadening compatibility, but an outcome of enforcement or regulatory pressure in the UK market.

The article did not, in the information available here, provide technical specifics on what “allowing rivals” would mean in practice. It also did not spell out which competing services would be affected first, when the change would take effect, or whether Apple would continue to control user experience surfaces such as authentication steps and default wallet behaviors.

Apple does not typically comment on pending regulatory actions in advance of formal decisions, and no confirming detail is available in the material provided for this review. Apple’s public communications tend to emphasize the security and privacy features of payments on iPhone, along with its ecosystem of banks, card issuers, and digital wallet partners.

Still, the competitive stakes are clear. If rival payment providers are permitted to route payments through iPhone more directly, the shift could weaken Apple Pay’s position as the most direct path to tap-and-pay on the device. It could also increase the range of wallet experiences available to consumers, potentially reducing the advantage of having one dominant, device-level payment interface.

What remains uncertain is how regulators will draw the boundary between interoperability and control. Allowing rivals could mean permitting alternative wallets to use iPhone’s contactless capabilities, or it could mean requiring Apple to support additional payment flows while retaining certain Apple-managed security and authentication functions. The scope of any required changes, and the compliance timeline, are the key missing pieces that will determine how disruptive the rule is for both Apple and its payment partners.

Investors and industry watchers will likely focus next on any official UK regulatory documentation, including the precise rule language, compliance deadlines, and whether Apple can appeal or negotiate implementation timelines. Watch also for indicates from payment providers and large banks about product plans in the UK, because the commercial impact will depend on how quickly rivals can translate any new permissions into consumer-facing wallet options.