The UK’s CMA plans to break Apple’s dominance in contactless payments to boost local fintech. Sarah Cardell said, "By removing barriers to entry, we can help create the conditions for brilliant British businesses." While Apple defends its security, the CMA will consult on these new proposals until November 17 this year.
The CMA's proposals are less stringent than those enforced by the European Union in 2024, which included giving third-party wallet developers free access.
Since then, several companies have launched alternative payment apps.
CMA Chief Executive Sarah Cardell said these proposals would encourage more innovation and choice while boosting Britain's fintech sector.
Cardell emphasized that high fees, strict terms, and technical restrictions related to Apple's contactless technology make it difficult for challengers to innovate and compete.
She said, "By removing barriers to entry, we can help create the conditions for brilliant British businesses with great ideas to develop new products and services here - from payment apps and digital IDs to travel passes and digital keys."
The CMA noted that contactless payments have surged in popularity, accounting for 39% of all transactions today, compared to just 3% a decade ago.
Over 60% of adults now use a digital wallet, with Apple Wallet being the most popular in Britain.
The CMA is currently consulting on these proposals until November 17 before making a final decision.
In response to the CMA's proposals, Apple said it had already made contactless payments possible for developers through NFC and its secure element.
An Apple spokesperson said this enabled developers to create products and services while keeping users' sensitive data protected by high security standards.
The company added, "We do not believe the CMA should require Apple to adopt an approach with lower privacy and security protections."