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Do you own an Apple brand smartphone? Apple finally gave in to pressure from European institutions and soon it will be possible to pay with the iPhone without using Apple Pay.
Previously, iPhone owners could only pay with their mobile phone using Apple Pay. A closed system that has been the subject of criticism and pressure from European institutions for many years. Finally, Apple has decided to open iPhone mobile payments to third-party services starting with the next iOS update, scheduled for mid-March. There is still one uncertainty: the quality of the user experience.
The end of Apple Pay's monopoly on mobile payments with the iPhone
Do you have an iPhone and want to pay using your cell phone? The Apple brand only allows the use of the NFC chip, which enables mobile payments, for its in-house Apple Pay service. A situation of exclusivity that has long been criticized by European institutions without the Apple brand having taken it into account … until it announced that it would allow other payment services to use the NFC chip in iPhones.
This policy change follows in particular the new European Digital Markets Act (DMA), which was passed a year ago. The opening to third-party payment services is expected to take effect with the next update of the iPhone operating system iOS, which is scheduled for mid-March. Owners of these mobile phones can then also use mobile payment services other than Apple Pay.
This announcement is very positive for the affected third-party providers. In fact, they can use this opportunity to increase their user base. But above all, they will be able to save money by avoiding having to pay commissions for every payment made through Apple Pay. Digital wallets such as PayPal, Paylib and Lyf Pay will therefore be able to develop among iPhone owners.
Also read: Payment: What are the 3 most popular payment methods?
Apple maintains certain restrictions on the use of mobile payments
Even though Apple has decided to allow third-party providers to use the NFC chip in its mobile phones, the company has still not opened all authentication solutions to these services. To pay with Apple Pay, users simply need to double-click the home button on their phone and then identify themselves using facial authentication using Face ID or using digital Touch ID authentication.
However, according to Les Echos, Apple will not allow third-party mobile payment services to access biometric data such as facial and digital recognition. Ultimately, Martina Weimert, General Director of EPI and responsible for developing a pan-European and interbank-based instant payment solution, is not sure whether the change announced with the next iOS update will “completely open up the game.”
In fact, if Apple maintains these restrictions, there is a risk of forcing third-party applications to offer a more complicated and therefore inferior user experience compared to Apple Pay. To be able to make mobile payments, you must definitely unlock your smartphone, then open the banking application and finally enter a validation code. So many additional steps that may make the task longer and more tedious for users of services other than those offered by the Apple company itself.