Apple is finally loosening its iron grip on the NFC chip in iPhones with the rollout of iOS 18.1.
Earlier this year, the EU took issue with the way that Apple was preventing other companies from using iPhone contactless payment systems outside of Apple Pay and the Wallet app. Apple settled this dispute, agreeing to open the door to third-party payment companies to use the NFC technology inside the iPhone to facilitate mobile payments for the first time.
And starting with iOS 18.1, developers can now offer NFC contactless transactions right from their apps, separate from the default options of Apple Pay and Apple Wallet.
Apple's new NFC freedom will initially be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US, with more locations to follow. In the meantime, both developers and users can still rely on the familiar, secure experience of Apple Pay and Wallet.
How can third-party developers use the NFC chip?
With the new NFC and Secure Element (SE) APIs, devs can enable in-app contactless transactions for a myriad of uses. We're talking in-store payments, car keys, transit cards, corporate badges, student IDs, home and hotel keys, merchant loyalty cards, rewards cards, and even event tickets. Government IDs are in the pipeline too, though they’ll arrive later.
Now, let’s talk security. Apple assures that your security and privacy are a top priority. These new APIs are designed to leverage the Secure Element – a certified chip that securely stores sensitive info on your device. Apple is also throwing in the Secure Enclave, biometric authentication, and some secret sauce from Apple servers to ensure that your contactless transactions are as safe as houses.
To kick off a transaction within an app using these new APIs, users can either open the app directly or set it as their default contactless app in iOS Settings. A quick double-click on the side button, and you’re good to go.
Of course, there’s a catch. Developers need to side with Apple, entering into a commercial agreement, requesting the NFC and SE entitlement, and (you guessed it) paying the associated fees. Only authorised devs who meet specific industry and regulatory standards, and who agree to Apple’s ongoing security and privacy terms, will get access to these coveted APIs.
iOS 18.1 isn't expected to arrive until October, along with all of Apple's AI features nestled within Apple Intelligence. That said, it's likely that the next iOS 18.1 Developer Beta will let devs get their hands on these new APIs.
