Apple announced that it will allow third-party developers to use the iPhone’s NFC chip for transactions. This is a departure from the company’s previous stance because of the continuous pressure from the European Union. Apple even allowed Spotify to display pricing information, including promotional offers, within its app.
“Starting with iOS 18.1, developers will be able to offer NFC contactless transactions using the Secure Element from within their own apps on iPhone, separate from Apple Pay and Apple Wallet. Using the new NFC and SE (Secure Element) APIs, developers will be able to offer in-app contactless transactions for in-store payments, car keys, closed-loop transit, corporate badges, student IDs, home keys, hotel keys, merchant loyalty and rewards cards, and event tickets, with government IDs to be supported in the future.”
The iOS 18.1 update will let developers use the NFC chip for many functions like in-store payments, transit fares, access control, and loyalty programs. Government ID support is slated for a later release.
For years, Apple has maintained a tight grip on the NFC chip, limiting its use to Apple Pay. This has been criticized for stifling competition.
But, the company is not entirely losing control. Under the new approach, though, Apple will still require developers to pay “associated fees” to use the NFC chip and enter into a “commercial agreement. – Mark Gurman. The program will initially be rolled out in Australia, Brazil, Canada, Japan, New Zealand, the US, and the UK.
“To incorporate this new solution in their iPhone apps, developers will need to enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees.”
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