EU Investigation into Mobile Wallets and Tap-to-Pay Access

Contactless payments moved from plastic cards to phones and watches. Near-field communication (NFC) chips let you tap at transit gates and checkout terminals.

On iPhones, Apple historically restricted NFC payment credentials for third parties, routing banks through Apple Pay with fees and branding rules.

European banks and fintechs complained they could not offer competing tap-to-pay apps with their own loyalty features, hurting payment competition and data innovation.

The Commission opened an abuse-of-dominance investigation in 2022, parallel to UK and US scrutiny and later DMA obligations on gatekeepers for payment services.

Apple cites security and user experience, saying opening NFC risks fraud and fragmentation. Rivals argue Android already allows multiple wallets with strong security.

DMA compliance added technical steps—APIs, default wallet settings—but developers report testing whether access is truly equivalent to Apple Pay.

On 11 July 2024 the Commission made Apple's NFC commitments binding for ten years and closed AT.40452. There was no fine. DMA payment duties are a different, still-open track.

Payment apps compete on rewards, budgeting tools, and fees invisible at the tap.

Hardware access cases recur across NFC, Bluetooth, and secure enclaves—templates for other locked features.

European outcomes may influence US wallet competition on iPhones.

Merchants indirectly feel payment competition through interchange and wallet incentives.

Apple dominates mobile wallets on iOS devices in the EEA.

NFC access rules exclude rival wallet apps from equivalent tap-to-pay functionality.

Tying Apple Pay to device security features forecloses bank-branded wallets.

Developers face unclear criteria for approval of alternative payment apps.

Apple says Apple Pay protects card tokens and reduces fraud.

It argues users can still pay with cards and many online alternatives.

It maintains DMA and iOS updates provide new access pathways.

It warns forced openness could weaken device integrity.

EU residents may see more bank apps offer tap-to-pay as DMA and investigations progress—try updates if your bank announces support.

Compare wallet rewards; more competition may change cashback offers.

Security settings matter when enabling new payment apps—verify official bank releases.

US iPhone users should not assume EU remedies apply locally yet.