Home | FinTech | Digital Lending / Digital Payments

Apple’s NFC Chip Opens to Third-Party Payments under EU Regulation

June 20, 2024

Image Credit: Pexels

Apple’s NFC Chip Opens to Third-Party Payments under EU Regulation

Apple’s recent decision to open up the iPhone’s NFC chip to third-party contactless payment services has garnered approval from the European Union, marking a significant shift in the company’s business practices. This decision forms part of Apple’s compliance with the Digital Markets Act (DMA), a regulation crafted to encourage fair competition within the digital market. Introduced with iOS 17.4, this update is significant not only for its practical implications but also for its avoidance of substantial EU-imposed fines. Apple has also included support for third-party app stores in this update, signaling the company’s commitment to adhering to the new regulatory landscape.

The EU’s satisfaction with Apple’s NFC-related modifications signals a positive turn in what could have been a more severe outcome for the tech giant. The end of the probe marks a milestone; Apple has successfully avoided a fine that could have amounted to 10% of its annual revenue, around $40 billion. This regulatory approval means that third-party developers in the European Union can now integrate contactless payment functionalities directly into their apps without relying solely on Apple Pay or Apple Wallet. This new flexibility affords developers greater autonomy and diminishes Apple’s monopoly over iPhone payment services, marking a win for fair competition advocates.

Long-Term Compliance and Persistent Scrutiny

Apple’s recent move to open the iPhone’s NFC chip to third-party contactless payment services has received approval from the European Union, marking a notable shift in the tech giant’s business model. This change is in compliance with the Digital Markets Act (DMA), a regulation aimed at promoting fair competition in the digital market. Introduced with iOS 17.4, this update not only has practical implications but also helps Apple avoid hefty fines from the EU.

Additionally, Apple has expanded its support to include third-party app stores, demonstrating its commitment to adhering to the new regulatory framework. The EU’s approval of Apple’s changes signals a positive outcome, avoiding a potential fine that could have been as high as 10% of Apple’s annual revenue, or roughly $40 billion.

This regulatory green light means that third-party developers in the European Union can now integrate contactless payment functionalities directly into their apps, bypassing the need to rely solely on Apple Pay or Apple Wallet. This increased flexibility offers developers more control and reduces Apple’s dominance in iPhone payment services, representing a victory for advocates of fair competition in the digital landscape.

Explore more

How Is Cognitive ERP Transforming Modern Manufacturing?

October 1, 2026

The emergence of vertical AI agents like Epicor Prism allows manufacturers to identify operational risks and reduce manual effort within established logic. This shift represents a departure from legacy systems that historically functioned as static repositories of data. For decades, Enterprise Resource Planning (ERP) served primarily as a system of record, documenting financial and operational history after the fact. However,

Attackers Exploit Custom GPTs to Spread Malware via ClickFix

October 1, 2026

The rapid integration of generative artificial intelligence into everyday workflows has inadvertently created a massive new attack surface that cybercriminals are now aggressively exploiting through the subversion of trusted ecosystems. Recent security investigations have identified a sophisticated campaign that weaponizes the Custom GPT feature to deliver potent malware. This attack does not rely on traditional phishing pages that mimic a

Innogrid Builds GPU-Based AI Cloud Platform for KOSME

October 1, 2026

The modernization of the SME Big Data Platform involved replacing an inefficient on-premises system with a domestic private cloud solution that meets the National Intelligence Service’s security standards. This initiative by Innogrid addresses a critical bottleneck for the Korea SMEs and Startups Agency, which previously struggled with a rigid hardware setup that hampered its ability to process vast amounts of

Can Tech Firms Exclude Americans for H-1B Visa Holders?

October 1, 2026

Evidence presented by federal investigators suggests that several qualified domestic workers were ignored in favor of candidates from India and Nepal. This specific allegation is at the center of a federal lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) against Sibitalent Corp., a staffing agency based in Texas. The legal challenge, brought before the U.S. District Court for

How Does German Law Balance Volunteering and Employment?

October 1, 2026

An employer’s right to a focused workforce must be balanced against the constitutional protections that allow citizens to prepare for and hold political mandates at various levels. This foundational principle shapes the modern German labor market, where the concept of the dedicated employee often extends into the realm of Ehrenamt, or volunteering. This practice exists at a complex intersection of