Apple is finally letting third-party app developers add NFC options with the upcoming iOS 18.1 update, meaning that devs will be able to implement their version of contactless transaction systems on iPhones.
Apple announced the change in a blog post today and can be directly seen as a response to the European Union forcing Apple to offer Apple Pay alternatives from July. The "legally binding" agreement came after four years of investigation by the EU.
Importantly, Apple's attempt to comply with the EU's Digital Markets Act won't just affect European iPhone owners. According to Apple's post, the new NFC API will also be available in the United States, Australia, Brazil, Canada, Japan and New Zealand.
When iOS 18.1 finally arrives, developers will be able to offer contactless payments and other contactless transactions using the iPhone's Secure Element. This dedicated chip is what Apple Pay utilizes. It stores sensitive information that can only be accessed through the Secure Enclave, which runs encryption and biometric data on iPhones.
NFC not only handles payments. It also enables car keys, badges, home and hotel keys, rewards cards, tickets and various IDs and badges. Apple says, "government IDs to be supported in the future." This could mean more support for digital driver's licenses that already exist in the Apple Wallet. However, some states have their own apps for digital IDs, which could expand the feature to states operating their own systems.
While Apple has been adding more ways to stash digital tickets, boarding passes and the option to have those passes available in other apps or from the companies producing them.
When NFC becomes available, you'll be able to either use the feature directly from within the third-party app or by seeing the app as a default contactless app in iOS 18 settings.
That said, Apple will require developers to "enter into a commercial agreement with Apple," request NFC and Secure Enclave entitlements and "pay associated fees." Whether or not that deters developers from adding NFC to their apps remains to be seen. As it stands, Apple is in multiple battles with various companies over the fees they charge for apps in the App Store.
Apple Pay and Apple Wallet will remain mainstays for iPhone owners, but it's always good to have options.
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