Apple will be unlocking iPhone NFC chips for third-party apps everywhere

• The latest Apple 18.1 update news features details of NFC chip chip access
• The move will doubtless prompt a wave of new payment apps – and Apple will be charging them all a new fee…

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Apple will allow third-party developers to access its NFC chip this autumn with the release of iOS 18.1. 

The move comes on the back of the DMA and European pressure which recently forced Apple to open up its NFC chip in iPhones to other apps. The chip was previously restricted to only Apple’s own Apple Pay service for contactless payments giving the company a monopoly on the popular feature.

Now – in a new message to developers in Apple’s Newsroom – comes the word that access to the NFC chip won’t just be a legally enforced European exclusive, but will be coming to iPhones everywhere as part of this year’s iOS 18.1 update.

New feature… new fee…

Needless to say, this is good news for anyone currently offering a banking app or planning a payments app on iPhone – not least practically every financial institution on the planet. And it’d be easy to view the move as Apple relenting after monopoly pressure or in some way backing down on their previous NFC lock-out. 

But a closer look at the small print reveals perhaps the real reason for Apple’s change of heart:

“To incorporate this new solution in their iPhone apps, developers will need to enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees.” 

Yes, there’s a new, as yet undislosed charge that Apple will be making for any dev creating an app that uses ‘their’ NFC chip.

NFC access beyond Europe

By expanding NFC access, banks can provide alternative contactless payment options and developers can integrate NFC into apps for functions like car keys, student IDs, travel cards, and government IDs support in future. 

Apple opening up NFC chips globally could – potentially – see a wealth of new apps and real-world uses.

An alternative view however is that service providers may now force users to use their particular app for particular tasks, removing support for the universally accepted Apple Pay and making life that bit more complex for users. Time will tell.

Apple’s iOS 18.1 is expected to release on Monday, October 21st. The NFC and SE APIs will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the U.K. and the U.S. in an upcoming developer seed for iOS 18.1, with additional locations to follow.