Apple’s iPhone software has been transformed in recent weeks for all users in the European Union. One of the changes waiting to be implemented is the opening of the tap-and-go mobile payments system to rival companies. And now we know when that’s coming—as soon as May.
That’s according to a new report by Reuters, which says that the change “is set to be approved by EU antitrust regulators as soon as next month after it tweaked some of the terms, people familiar with the matter said.”
As always with the changes which have come about in response to the EU’s Digital Markets Act, it only applies to users in the EU, but it’s doubtless the case that governments in the U.S., U.K. and elsewhere are watching closely to consider introducing similar changes for their citizens.
Right now on the iPhone you can only use tap-and-go payments through the Wallet app, but by opening up the Near Field Communication chip on the phone, Apple will allow other apps to directly access the feature.
So, users will be able to choose an app as their default payment app, allowing a bank or other payment provider to use the payment system without Apple being involved as an intermediary. It could also mean that payments on transit systems, which currently go through Apple Pay if you tap in and out at the subway station, for instance, could be re-routed to the transportation company instead.
This will likely mean a reduction in fees paid to Apple compared to now, but it may also lead to a reduction in safety, or at least the perception of it.
Apple Pay is a secure and efficient system which has built up trust in iPhone users, for instance, since it was first introduced on the iPhone 6 in 2014 and later on the Apple Watch, Mac and iPad.
Some users may not feel the same level of trust for a public transport company, and there may be reluctance to trust more apps with access that can take funds out of their accounts, for instance.
Of course, users don’t have to embrace a change just because it’s there, though if banks are saving money by not paying commission to Apple, you can be sure they’ll encourage users to switch to their apps for payments instead of Apple Pay.
Reuters said the date of the feature being approved by the European Commission could still change, saying, “The Commission aims to accept the offer by the summer, with May as the likeliest month although the timing could still change as it waits for Apple to work out the final technical details.”
