The UK’s Competition and Markets Authority (CMA) is expected to publish proposals for consultation in the week beginning 19 October 2026. Under the proposals, Apple would be required to give rival payment providers access to the iPhone’s ‘tap-to-pay’ functionality, according to the Financial Times, which cited several people familiar with the matter. The CMA is set to argue that Apple holds unfair power over the UK’s tap-to-pay market. It will also recommend changes to the iPhone operating system that would let users select alternatives to Apple Pay.
If implemented, the requirements would weaken Apple Pay’s current position in the UK market. Apple is likely to challenge the decision in court, according to two people briefed on the matter. According to the announcement, the company did not respond to requests for comment, and the CMA declined to comment.
Regulatory background
The measures would form part of the conduct requirements, the CMA is imposing on Apple. These follow the regulator’s 2025 designation of the company with ‘strategic market status’ (SMS) for its mobile platform under the UK’s digital competition rules. SMS designations apply to companies with substantial influence in digital markets and last five years. Companies that breach the associated rules face fines of up to 10% of global turnover. In addition, the CMA held a consultation on digital wallets in summer 2026 after it received complaints about Apple’s position in the market.
NFC access and current arrangements
In most markets, including the UK, Apple Pay has preferred access to the iPhone’s Near Field Communication (NFC) chip. The chip communicates with payment terminals at retailers and on transport networks. Apple has argued that restricting NFC access to its own wallet protects user security and helps combat fraud.
In 2024, Apple introduced a system in several countries, including the UK, that lets payment companies use the NFC technology. To do so, companies must sign commercial agreements with Apple, comply with its security and privacy rules, and pay ‘associated fees’. Competition authorities consider this arrangement anti-competitive, according to two people familiar with the discussions.
The CMA is expected to recommend that the UK adopt a model similar to the EU’s. Under the Digital Markets Act, Apple has been required to open NFC access so that third parties can build their own wallets, which users can then set as their default payment option.
Implications for banks and fintechs
Opening NFC access would benefit fintechs such as PayPal, Revolut and Monzo, as well as traditional banks. These companies have long argued that Apple’s rules exclude them from the iPhone’s tap-to-pay function in the UK. Furthermore, banks and fintechs have also objected to the 0.15% fee Apple takes on credit card transactions made through Apple Pay.
According to the people familiar with the discussions, regulators are concerned that UK consumers are missing out because providers are unwilling to build separate wallets for the EU and the UK. One person said there were concerns that products available in Europe were not reaching the UK, which affects the country’s fintech sector and could slow the development of new services.
Apple has already taken steps to open its payment system in response to regulatory pressure in other markets.
The proposals come as the CMA seeks to reposition itself. In 2025, the UK government removed the regulator’s chair and urged the watchdog to focus on economic growth. Since then, the CMA has worked to speed up its investigations, give businesses more certainty, and take a less interventionist approach to mergers and acquisitions.
