Until now, Apple Pay and Apple Wallet have had exclusive access to many features of the NFC chip in the iPhone. However, with the release of iOS 18.1, this is about to change.
With the iOS 18.1 update, Apple will allow developers to offer integrated NFC transactions within their apps using the Secure Element. Additionally, as part of the update, users will be able to set a default app for contactless payments, which can be accessed by double-pressing the side button on their iPhone. Previously, double-pressing this button only allowed the Apple Pay app to be displayed.
This modification will enable developers to offer contactless transactions within a wide range of third-party applications, including “in-store payments, car keys, closed-loop transport, corporate badges, student IDs, house keys, hotel keys, loyalty and merchant reward cards, as well as event tickets.” Until now, NFC access for third-party applications was limited to reading tags. Apple also mentioned in its press release that government IDs will be supported “in the future.”
Relevant APIs for creating such applications will be made available to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the USA in the upcoming beta version of iOS 18.1 for developers. Additional countries will be added later. However, developers looking to take advantage of Apple's APIs will need to “enter into a commercial agreement with Apple, submit a request for NFC and SE rights, and pay the applicable fees.”
This change comes after Apple's proposal to open up NFC payments on the iPhone to third-party providers following an antitrust investigation by the European Commission. Last month, the European Commission announced the mandatory commitments by Apple.
Source: The Verge
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