Apple opens NFC to third-party developers with iOS 18.1

Apple announced that it will open NFC access to third-party developers with iOS 18.1. Thus, it will be possible to embed contactless transaction systems in third-party applications. Although Apple was expected to make this expansion only in the European Union, the company preferred a global expansion.

The move follows Apple’s “legally binding” agreement with the European Commission last month to comply with EU regulations. The deal follows a four-year investigation by the European Commission, which found that Apple was responsible for restricting rival mobile wallet developers’ access to the iPhone’s core payment technology.

When iOS 18.1 is released, developers will be able to offer contactless payments (and other transactions) using the iPhone’s Secure Element, which Apple Pay also uses. The Secure Element can be defined as a special chip designed to store sensitive information accessed through the Secure Enclave, which processes encryption and biometric data.

In addition to touch-to-touch payment systems, NFC is also used to manage functions such as digital car keys, public transport cards, compatible home locks, hotel keys, student IDs, event tickets and retail loyalty and rewards cards. Apple says government IDs will also be “supported in the future.”

Once developers release NFC apps, it will be possible to use the secure hardware by opening the app directly or by setting third-party software as the default contactless app in iOS settings. Once you’ve done the latter, double-clicking the side button (like in Apple Pay) will commit the transaction.

The API will initially be available in the US and EU regions, as well as Australia, Brazil, Canada, Japan and New Zealand.

Developers must make a commercial agreement with Apple

To participate, developers will need to “enter into a commercial agreement with the company,” claim NFC and Secure Enclave rights, and “pay the associated fees.” Of course, Apple Pay and Apple Wallet will continue to be available even if competing systems are invited into the company’s software.