Apple has announced a major new initiative that will fundamentally alter how payments can be made using iPhones across Europe. As part of sweeping updates arriving in the soon to be released iOS 17.4 update, Apple is opening up access to the NFC (Near Field Communication) chip used for contactless payments in all iPhone models sold across EU countries.

Currently, NFC payments on iPhones have only been possible through Apple’s own Apple Pay system and Wallet app. However, under the new changes, third-party apps will now be able to access and leverage the NFC chip to enable their own proprietary tap-to-pay functionality.

This means that going forward, iPhone users across Europe will be able to make contactless payments directly within third-party apps, without needing to route payments through Apple Pay or even open the Wallet app.

Banks, financial institutions and digital wallet providers will now have the ability to build and offer customized tap-to-pay solutions that integrate directly into their iPhone apps to enable smoother customer experiences.

Under the new system, iPhone users will also be able to set a default payment app that will automatically open whenever the phone is brought near payment terminals. Additionally, payments can be triggered by double-clicking the iPhone’s side button. This delivers full native support for contactless payments without involving Apple Pay at all.

While opening up access, Apple has mandated that any apps leveraging NFC for payments will need to comply with industry security standards and acquire valid agreements with authorized Payment Service Providers before services go live.

Much like the parallel changes being made to App Store policies, the NFC updates are currently limited to countries in the European Economic Area. However, they signal Apple’s openness to rethinking some of its more restrictive hardware and software practices in light of regulators’ concerns.

This unprecedented opening up of NFC access has the potential to significantly diversify and enhance contactless payment capabilities available to iPhone users across EU countries. It clears the path for providers to build and deliver unique tap-to-pay solutions tailored to their customer’s specific needs.