Payment on Apple

Full Title or Meme

Mobile Payment success is greatly determined by the functional of the mobile devcie.

Context

In 2022, the European Commission conducted an investigation in hashtag#Apple, which was prompted by concerns related to competition within the payment market. The specific concern was that hashtag#applepay, being the sole option available to iPhone users for contactless payments, might be limiting or suppressing competition in the industry.

In response to these concerns and regulatory pressures, Apple is opening up its NFC technology to third-party mobile wallet and payment service providers in the EEA and beyond. This shift marks a significant change in the mobile payment industry. Traditionally, Apple has exclusively reserved its NFC technology for Apple Pay and Apple Wallet.

Several foundational payment concepts and features are at play in this development. Let's explore them:

🖇️𝗡𝗙𝗖 (𝗡𝗲𝗮𝗿 𝗙𝗶𝗲𝗹𝗱 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻) 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆: Apple is taking a significant step forward by enabling third-party mobile wallet and payment service providers to access the NFC (Near Field Communication) capabilities found within iOS devices. What sets this move apart is that these providers won't required to rely on Apple Pay or Apple Wallet as intermediaries for accessing NFC technology.

🖇️𝗔𝗣𝗜 𝗔𝗰𝗰𝗲𝘀𝘀: Apple will have to create a pathway to utilize NFC technology on Apple devices seamlessly, as if they were Apple Pay or Apple Wallet themselves.

🖇️𝗛𝗖𝗘 (𝗛𝗼𝘀𝘁 𝗖𝗮𝗿𝗱 𝗘𝗺𝘂𝗹𝗮𝘁𝗶𝗼𝗻) 𝗠𝗼𝗱𝗲: In the context of Apple, HCE allows an iPhone to act as if it were a physical contactless smartcard, like a credit card, when interacting with compatible payment terminals or access control systems, without the need for a physical secure element.

🖇️𝗠𝗼𝗯𝗶𝗹𝗲 𝗪𝗮𝗹𝗹𝗲𝘁𝘀: Apple's decision extends to all third-party mobile wallet app developers operating within the European Economic Area (EEA). This broader access is a significant departure from the previous closed ecosystem and signals a more inclusive approach.

🖇️𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀: Apple's commitment extends beyond the boundaries of the EEA. Users can utilize these third-party apps for payments in stores located outside the EEA.

🖇️𝗕𝗶𝗼𝗺𝗲𝘁𝗿𝗶𝗰 𝗔𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Users will retain access to authentication features such as Face ID and will retain control over certain functionalities to tailor their payment experience according to their preferences.

References

• See wiki page on NFC