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(Sharecast News) - Britain's competition watchdog has proposed measures designed to increase competition in contactless payments and reduce Apple's dominance in the sector.
Under the plans, banks, fintechs and digital wallet providers would gain easier access to technology used for mobile payments, potentially creating alternatives to Apple Pay.
The Competition and Markets Authority said complaints from industry participants centred on high fees, restrictive terms and technical barriers that limited rivals' ability to compete.
Fresh competition could spur innovation and give consumers greater choice, it added. "These proposals open the door to more innovation, more choice and economic growth, including in the UK's important fintech sector," said CMA boss Sarah Cardell.
"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."
The UK proposals are milder that those already imposed by the European Union against Apple's control of iPhone contactless payments. Under commitments agreed with Brussels in 2024, Apple opened NFC access to rival wallet providers free of charge, allowing them to offer tap-to-pay services without using Apple Pay.
The measures also required Apple to let competing wallets access key iPhone features, including Face ID, Touch ID and default wallet settings, putting rivals on a more equal footing.
Britain on the other hand wants Apple to provide access on fair and reasonable terms, while retaining the ability to charge fees and earn a return on its technology.
Since Apple's concessions took effect, firms such as PayPal, Klarna, Curve and BBVA have launched rival wallets in Europe while no comparable alternatives have emerged in the UK.
Contactless payments now account for 39% of transactions in the UK, while more than 60% of adults use a digital wallet, the CMA said.
Consultation on the proposals will run until November 17, after which the regulator is expected to reach a final decision.
Reporting by Frank Prenesti for Sharecast.com