Apple announced that it will open NFC access to third-party developers with iOS 18.1. This will allow contactless transaction systems to be embedded in third-party applications. Although Apple was expected to implement this initiative only in the European Union, the company preferred a global initiative.
The move follows Apple’s “legally binding” agreement with the European Commission last month to comply with EU regulations, following a four-year investigation by the European Commission that found Apple was responsible for restricting rival mobile wallet developers’ access to the iPhone’s core payment technology.
When iOS 18.1 is released, developers will be able to offer contactless payments (and other transactions) using the iPhone’s Secure Element, which is also used by Apple Pay. The Secure Element is a special chip designed to store sensitive information accessed through the Secure Enclave, which handles encryption and biometric data.
In addition to tap-to-pay systems, NFC is also used to manage functions such as digital car keys, public transit cards, compatible home locks, hotel keys, student IDs, event tickets, and retail loyalty and rewards cards. Apple says official IDs will also be “supported in the future.”
Once developers release NFC apps, it will be possible to use the secure hardware by opening the app directly or by setting the third-party software as the default contactless app in iOS settings. After doing the latter, a double-click of the side button (like Apple Pay) will perform the transaction.
The API will initially be available in the US and EU regions, as well as Australia, Brazil, Canada, Japan, and New Zealand.
Developers have to make a commercial agreement with Apple
To participate, developers will need to “enter into a commercial agreement with the company,” request NFC and Secure Enclave rights, and “pay the applicable fees.” Of course, Apple Pay and Apple Wallet will still be available even if rival systems are invited into the company’s software.