Apple will soon let other apps support NFC payments, but there’s a catch

Apple is set to open up an iPhone feature previously limited to the company’s Apple Pay service, giving third-party app developers access to the near field communication (NFC) technology on its smartphones. The Cupertino company previously said it would give developers in the European Union (EU) region access to the feature in response to a threatened investigation by the European Commission. This could allow third-party apps to support tap-to-pay functionality on iOS, just like Android smartphones.

Apple Supports Third-Party Access to NFC Technology with iOS 18.1

According to details Shared by the iPhone maker, an upcoming developer beta of iOS 18.1 will give third-party developers in both the EU and other regions access to the iPhone’s NFC technology. Currently, only Apple Pay and Apple Wallet support contactless payments, as access to the chip is limited to the company’s apps and services, on iOS 17 and earlier.

This means that a future version of iOS 18 will support NFC payments and transactions through third-party apps by accessing Apple’s Secure Element microprocessor. This will allow banks and other apps to support contactless payments even in regions where Apple Pay isn’t supported, including India.

In addition to contactless payments, third-party apps can also provide access to digital versions of transit cards, student and corporate IDs, hotel and house keys, event tickets, and rewards or loyalty cards. Apple also says that government IDs will be supported via third-party apps in the future.

Third-party NFC access requires developer fees

While Apple’s decision to open up access to NFC functionality on iOS is a positive step, Apple has imposed some limitations on its availability. To start, third-party access to the feature on iOS 18.1 will be available to developers in seven countries outside the EU.

This means that besides developers in the EU, only those in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US will initially have access to the iPhone’s NFC technology with an upcoming iOS 18.1 developer beta release. Apple has not mentioned when other regions — including India — will get access to the contactless payment functionality on Apple’s smartphones.

Developers living in the aforementioned countries will have to pay Apple for access to the NFC and Secure Element (SE) application programming interfaces (APIs). The company says developers must “enter into a commercial agreement with Apple, obtain the NFC and SE rights, and pay the associated fees” to give a third-party app access to these APIs.

According to the company, these requirements mean that developers will only be able to access the APIs required for NFC technology on an iPhone if they meet legal requirements and adhere to the company’s privacy and security standards.

On Android smartphones, contactless payments via third-party apps are accessible to applications that include a declaration of use of NFC hardware in the application’s “manifest” file. Google and Android smartphone manufacturers have not charged developers for access to NFC functionality, so it remains to be seen how the EU responds to Apple’s requirements for use of the feature on iOS.