CMA proposes opening iPhone contactless payments to rival apps

The Competition and Markets Authority (CMA) published proposals on 20 October 2026 that would make Apple let other businesses' apps use the contactless chip in the iPhone, which lets people pay by tapping their phone on a card reader. The CMA said that businesses would pay lower fees, and that both businesses and people would have more choice. It is asking for views until 17 November.

Sarah Cardell, Chief Executive of the CMA, said:

These proposals open the door to more innovation, more choice and economic growth, including in the UK's important fintech sector. We have heard that high fees, strict terms, and technical restrictions relating to Apple's contactless technology make it too difficult for challengers to innovate and compete. 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.

What is changing

The CMA can set these rules because on 22 October 2025 it decided that Apple has strong and lasting market power over the iPhone's operating system, how apps are installed on it and its web browser.

The proposals, set out in the consultation, would mean:

• Apple would have to let other businesses' apps use the contactless chip on fair, reasonable and open terms that do not unfairly favour some businesses over others
• people in the UK could set an app other than Apple Wallet as the one their iPhone uses when they tap to pay
• the CMA would not set the fees Apple charges businesses for this, but it has proposed rules for how the fees should be worked out

The CMA said that it expects businesses to pay fees that are "substantially lower than Apple's current fees", while still paying Apple fairly.

What it means for consumers

The CMA said that people would benefit directly. It said that more competition would give people a wider choice of apps and push Apple and other businesses to make their apps work better and give better value. That could include saving people money or offering rewards, it said.

Nothing changes for people paying with an iPhone until the CMA makes a final decision.

A Which? survey of 4,216 mobile phone users aged 18 and over in May 2026 found that 62% use a digital wallet. Half (50%) of those wallet users use Apple Wallet, the most popular choice.

The CMA said that no business has launched its own app in the UK to rival Apple Wallet. In the EU, the first rival payment app launched 6 months after Apple agreed to open up the chip for payments there, and others have followed, the CMA said.

What happens next

Responses can be sent through the CMA's consultation website until 11:59pm on Tuesday 17 November 2026. The CMA said that it will make a final decision after it has assessed the responses. It did not give a date for the decision.