Apple Offers iPhone NFC Chip Access to Apple Pay Rivals in EU

Lee Duna@lemmy.nz to Technology@lemmy.world – 155 points –
Apple Offers iPhone NFC Chip Access to Apple Pay Rivals in EU
macrumors.com
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Apple Pay charges much higher rates than competing payment processors.

Apple Pay isn't a payment processor. It's a system for banks to provisional additional cards on their customer's devices, which are then processed the same way and for the same fees as tapping the physical card.

Banks want direct access to the NFC because they want to bully people into making their app the default handler for payment cards. One of the great things about Apple Pay is that all banks must compete as equals for every transaction. It's trivially easy to switch which card you use when you pay and every card gets the same best user experience.

Forcing NFC open is, paradoxically, anti-competitive, because it makes it easier for the biggest banks to stop competing and instead lock their customers in.

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