In mid-July, Apple announced that it would be releasing its NFC chip to its rivals following pressure from the EU and its case against Apple, accusing the tech giant of monopolising the payments and technologies markets. In keeping with the agreed outcome, Apple is now enabling developers to offer in-app NFC transactions using Apple’s Secure Element.
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.
The NFC and SE APIs leverage the Secure Element — an industry-standard, certified chip designed to store sensitive information securely on device. Apple has dedicated significant resources to design a solution that protects users’ security and privacy, leveraging a number of Apple’s proprietary hardware and software technologies when making a contactless transaction. This includes the Secure Enclave, biometric authentication, and Apple servers.
To make a contactless transaction within an app that utilises these APIs, users can either open the app directly, or set the app as their default contactless app in iOS Settings, and double-click the side button on iPhone to initiate a transaction.
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. This ensures that only authorised developers who meet certain industry and regulatory requirements, and commit to Apple’s ongoing security and privacy standards, can access the relevant APIs.
With a key focus on security, developers will now 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
Government IDs are set to be supported in the future.
The NFC and SE APIs will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US in an upcoming developer seed for iOS 18.1, with additional locations to follow. Developers and users will continue to have access to the easy, secure, and private experience of Apple Pay and Wallet.
Greater access to payment wallets
Shachar Bialick, CEO and founder of paytech Curve
Commending the move from Apple, Shachar Bialick, CEO and founder of paytech Curve, explained how this will create a more diverse payments market: “We welcome Apple’s latest announcement, which will see more consumers around the world gain access to third-party payment wallets and is a positive move for consumers who will benefit from choice and innovation in payments on iOS for the first time.
“What remains unclear is how onerous Apple’s access fees will be, and whether there is enough profit left for third-party developers to encourage more customer-centric innovation.”
Dr Ritesh Jain, founder of Infynit
Commenting on LinkedIn, Dr Ritesh Jain, founder of Infynit, the credit card supercharger, said: “Apple’s move to open up the tap-to-pay ecosystem is a step forward for developers. While it comes with certain controls, it also creates new opportunities for innovation within Apple’s framework. It’ll be interesting to see how developers leverage this chance to bring fresh ideas to life.”
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