Apple’s iPhone software is undergoing a significant transformation within the European Union (EU), with one of the upcoming changes being the opening of the tap-and-go mobile payments system to rival companies. A recent report by Reuters reveals that this change is expected to receive approval from EU antitrust regulators as early as May, following some adjustments in the terms.
While these changes specifically apply to EU users, it’s likely that other governments worldwide, such as those in the U.S. and U.K., are closely monitoring the situation with the intention of implementing similar changes for their citizens.
Currently, iPhone users can only utilize tap-and-go payments through the Wallet app. However, by allowing other applications to directly access the Near Field Communication chip on the phone, Apple will enable users to choose their preferred payment app. This means that banks or other payment providers can utilize the payment system without Apple intermediating the process. Moreover, this change could potentially reroute payments made on transit systems, such as subway stations, allowing transportation companies to integrate their own payment systems.
With this development, there might be a reduction in fees paid to Apple, but there are concerns about the potential impact on security or the perception of it. Apple Pay has earned the trust of iPhone users with its secure and efficient system since its introduction in 2014. However, some users may be more apprehensive about entrusting a public transport company or other third-party apps with direct access to their accounts.
It remains to be seen how users will respond to this change. Banks, motivated by cost savings resulting from not paying commissions to Apple, are likely to encourage users to switch to their payment apps. While the approval of this feature by the European Commission is expected in May, Reuters notes that the timing may still be subject to change as Apple works out the final technical details.
FAQ Section:
1. What changes are occurring to Apple’s iPhone software within the European Union?
– Apple’s iPhone software is undergoing a significant transformation within the EU, with one of the upcoming changes being the opening up of the tap-and-go mobile payments system to rival companies.
2. When is the approval of these changes expected from EU antitrust regulators?
– The approval from EU antitrust regulators is expected as early as May, following some adjustments in the terms.
3. Do these changes only apply to EU users?
– Yes, these changes specifically apply to EU users, but it’s likely that other governments worldwide are closely monitoring the situation for potential implementation of similar changes.
4. How do iPhone users currently use tap-and-go payments?
– Currently, iPhone users can only utilize tap-and-go payments through the Wallet app.
5. What will change with the opening of the tap-and-go mobile payments system?
– By allowing other applications to directly access the Near Field Communication chip on the phone, Apple will enable users to choose their preferred payment app. This means that banks or other payment providers can utilize the payment system without Apple intermediating the process. It could also potentially reroute payments made on transit systems, allowing transportation companies to integrate their own payment systems.
6. What concerns arise with these changes?
– There are concerns about the potential impact on security or the perception of it. Users may be more apprehensive about entrusting a public transport company or third-party apps with direct access to their accounts.
7. How might this change impact fees paid to Apple?
– With this development, there might be a reduction in fees paid to Apple by banks and other payment providers who can utilize the payment system without Apple intermediation.
8. When is the approval of this feature by the European Commission expected?
– The approval is expected in May, but the timing may still be subject to change as Apple works out the final technical details.
Definitions:
– Tap-and-go: A mobile payment method that allows users to make transactions by simply tapping their device on a payment terminal.
– Near Field Communication (NFC): A technology that enables wireless communication between devices when they are in close proximity to each other.
– EU antitrust regulators: Authorities responsible for ensuring fair competition and preventing anti-competitive behavior within the European Union.
Related Links:
– Apple’s Official Website
– European Commission