The opening of the iPhone’s NFC chip to third-party developers could well reshuffle the cards of mobile payment. And a major player intends to take advantage of it: PayPal. The online payments giant is reportedly preparing its own mobile wallet to compete with Apple Pay, relying on the new capabilities offered by iOS. A small revolution that could redistribute the market in Europe.
iPhone NFC accessible to third-party apps
It all started when Apple had to give in to pressure from European regulators. The Apple company committed to opening access to the iPhone’s NFC to third-party payment apps in the EU for free for 10 years. Users will even be able to set them as default instead of Apple Pay.
A decision that was finally extended to the entire world, even if under more restrictive conditions. But the main thing is there: third-party developers can finally fully exploit NFC and its secure element for contactless mobile payments. A golden opportunity to shake up Apple Pay’s dominance.
PayPal on the starting blocks
The first to want to take advantage of this is none other than PayPal. The online payments giant clearly hinted during its latest quarterly results that it was working on a mobile wallet for iPhone, taking advantage of the new NFC APIs.
The goal is clear: to allow users to pay in-store with PayPal as easily as with Apple Pay. All they would have to do is take out their iPhone, double-click and let the NFC magic happen. An omnichannel experience that would perfectly combine online and offline payments, while including buyer protection.
A European market in sight
favorable: 90% of Europeans were already using its services in 2022. But for mobile payments, Apple Pay remains far ahead.
With its upcoming NFC wallet, PayPal is hoping to reverse the trend. It remains to be seen when it will be launched and how it will integrate into the Apple ecosystem. PayPal’s CEO is expected to say more at a conference in early September.
One thing is for sure: competition is going to be fierce on the iPhone. Apple Pay will have to show its teeth to keep its crown, facing a PayPal determined to take over the mobile payments market. European consumers should be the big winners in this battle, unless the increased choice comes at the expense of quality and user experience.
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