Australia Considers Case for Opening iPhone NFC Chip to Third Party Payment Systems

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26. July 2021

This article has been indexed from MacRumors: Mac News and Rumors – Front Page

Apple on Monday responded to questions from Australia’s parliament about its third-party access approach to the NFC chip in its iPhones, following claims that its Apple Pay system is stifling innovation in the contactless payment technology space.

The Parliamentary Joint Committee on Corporations and Financial Services heard for-and-against arguments from Apple, Google, and others relating to whether Apple should open up access to its near-field communication (NFC) chip. Australia’s big banks have also sought open access to the NFC chip on the iPhone in recent years. However, in a written response to the committee, Apple said it “provides banks with access to NFC functionality on Apple devices” through ‌Apple Pay‌, which is “available to all banks in Australia on fair and non-discriminatory terms.”

Apple has developed a technical architecture that comprises hardware and software components and application programming interfaces (APIs) that banks can use to facilitate contactless payments with their cards and mobile banking applications.

Apple chose to call this architecture Apple Pay because: (a) merchants need a simple way to communicate their acceptance of the service to consumers both in store and online, (b) Apple wished to facilitate consumer choice of payment method / bank by providing a consistent and simple experience, and (c) it allowed Apple to market the service to consumers without having to preference one bank over another.

According to ZDNet, Apple cited security as one of the reasons it doesn’t support alternatives to ‌Apple Pay‌, comparing it to Google’s HCE payment system which it claimed is an inherently less secure system with a worse user experience.

Host Card Emulation (HCE) is a less secure implementation, which was adopted by Android … Apple di

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