Apple announcement that developers will be able to offer contactless transactions through their applications using the iPhone’s NFC, starting with iOS 18.1. They will not be required to use Apple Pay or Apple’s Cards application.
Third-party iOS apps will access the iPhone’s NFC chip
With the new NFC and Secure Element (SE) APIs, developers will be able to offer contactless transactions in their apps for in-store payments, car keys, closed-loop transit, corporate badges, student IDs, house keys, hotel keys, merchant loyalty and rewards cards, and event tickets.
What about security and user privacy? According to Apple, this new solution was designed to provide developers with a secure way to offer contactless transactions using NFC from their iOS apps. The NFC and SE APIs are based on the Secure Element, an industry-standard chip that is designed to securely store sensitive information on the device. Apple has dedicated significant resources to designing a solution that protects user security and privacy by leveraging a number of Apple’s proprietary hardware and software technologies during a contactless transaction, including the Secure Enclave, biometric authentication, and Apple servers.
To complete a contactless transaction in an app that uses these APIs, users can either open the app directly or set the app as the default contactless app in iOS Settings, and double-click the iPhone side button to initiate a transaction.
Developers must sign with Apple
Any developer can use the iPhone’s NFC chip to make transactions with their app. However, they will need to enter into a commercial agreement with Apple, request permission to use the NFC and SE API, and pay the associated fees (the amount is not specified). This agreement ensures that only authorized developers who meet certain industry and regulatory requirements, and who commit to Apple’s security and privacy standards, will be able to access the corresponding APIs.
Some countries starting with iOS 18.1
The NFC and SE APIs will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States in a future phase of development for iOS 18.1, with additional countries to follow. Developers and users who choose to do so will continue to have access to Apple Pay and the Maps app.
It should be noted in passing that the countries of the European Union will not be entitled to the novelty, at least initially. This is quite funny when you know that it was the European Commission that pushed Apple to open up regarding the iPhone’s NFC chip.
