- When iOS 18.1 is released, third-party developers use application programming interface coding to tap into the NFC chip
- Developers will need to enter into a commercial agreement with Apple and pay associated fees to request the NFC and SE entitlement
After coming to agreement with European authorities earlier this summer, Apple will grant access to third-party developers when it comes to near field communications (NFC) in regards to mobile-wallet providers.
Apple revealed this long-desired access in press release Aug. 14 declaring developers will be able to use application programming interface coding to tap into the NFC chip and its secure element when iOS 18.1 is released.
Since its 2014 launch, Apple Pay, and associated Apple applications have been able to access the secure element. When iOS 18 is released in the coming months, developers in Australia, Brazil, Canada, Japan, New Zealand, United States and the United Kingdom can use the APIs with additional locations to follow.
NFC Developers Welcomed
“Using the new NFC and SE (Secure Element) APIs, developers will 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, with government IDs to be supported in the future,” the Apple announcement stated.
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 authorized developers who meet certain industry and regulatory requirements, and commit to Apple’s ongoing security and privacy standards, can access the relevant APIs, according to the Cupertino, CA-based company.
The new solution was designed to provide developers with a secure way to offer NFC contactless transactions from within their iOS apps. Users will have the option to 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.
Spurred by EU Deal
The move comes on the heels of the technology company reaching agreement with EU members on July 11 to allow rivals access to the iPhone’s ability to tap-to-pay in Europe. Companies will now have access to the standard technology behind contactless payments to offer alternative tap-to-pay tools to iPhone users in the European Economic Area (EEA), which includes the EU as well as Iceland.
The accord ended an investigation that started in April 2022 to stave off a potential hefty fine for the Silicon Valley-based company that could have been as much as 10 percent of its global annual turnover—given Apple’s reported revenue of $383 billion in 2023, the fine could have amounted to approximately $40 billion.
The agreement additional calls for NFC access for developers to pre-build payment apps for third party mobile wallet providers, enable developers to prompt users to easily set up their default payment app and redirect users to the default NFC settings page, enabling defaulting with only a few clicks and extend the possibility to initiate payments with payment apps at other industry-certified terminals, such as merchant phones or devices used as terminal, if this is enabled.
The EU previously found that Apple enjoyed a dominant position by restricting access to “tap-as-you-go” chips or near-field communication (NFC), which allows devices to interconnect within a very short range, to favor its own system.