Apple’s forced opening of NFC on iPhones in Europe, under pressure from Brussels, could well reshuffle the cards of mobile payment in Europe. Germany seems set to play the role of laboratory in this looming revolution, by offering its home equivalent of Apple Pay for contactless payment.
German banks ready to do without Apple Pay
The National Association of German Cooperative Banks (BVR) has just announced its intention to directly use the NFC chip of iPhones via its members’ applications. The goal: to bypass Apple Pay and the Wallet application for the approximately 100 million Girocard cards in circulation, the German equivalent of our credit cards.
This project, planned for 2025, potentially concerns 27 million customers. It is in line with Apple’s decision last July to give up exclusive control of NFC, deemed abusive by the European Commission.
A turning point for mobile payment in Europe?
If German banks succeed, it could set a major precedent and encourage other European institutions to follow suit. Enough to call into question the model of Apple Pay, which has built its success on its dominant position on iOS.
Of course, there are still some technical and functional hurdles to overcome for true parity, as the European Central Bank has pointed out. But the Cupertino giant seems to have gotten into the swing of things, recently announcing a new step in access to NFC, including outside Europe.
What impact for iPhone users?
For Germany’s millions of iPhone users, the move could eventually mean the ability to pay with their smartphone without using Apple Pay or Wallet. It remains to be seen whether the alternatives offered by banks will be as convenient and secure.
Because that’s the challenge: offering a user experience that’s at least equivalent, without sacrificing data confidentiality. A crucial issue to convince consumers accustomed to the simplicity and fluidity of the Apple ecosystem. The situation shouldn’t be similar to that of Android, where you have to download a number of third-party applications to pay contactless, when it works.
In any case, this German initiative shows that the situation is changing in mobile payment. And that the leadership of Apple Pay, which seemed unshakeable, could well be challenged sooner than expected. To be followed closely, in Germany and beyond.