The UK Competition and Markets Authority (CMA) opened a consultation on Oct. 20, 2026, proposing that Apple give UK businesses access to both contactless standards on iPhone: Secure Element (SE) and Host-based Card Emulation (HCE). The proposal also sets out principles for commercially viable access terms. The consultation is scheduled to close Nov. 17, 2026, after which the CMA says it will assess responses before making a decision. The CMA’s announcement describes a proposal under consultation, not an adopted requirement.
The two standards in the proposal
SE stores information on the device, while HCE stores data off-device. The CMA says Apple currently offers SE access in the UK and proposes access to both standards.
| Standard | Where information is stored | Role in the UK proposal |
| Secure Element (SE) | On the device | The CMA says Apple currently offers this access in the UK. |
| Host-based Card Emulation (HCE) | Off the device | The CMA proposes that Apple offer this alongside SE. |
The proposed access could support more than competing payment wallets. The CMA lists digital IDs and age verification, digital keys, tickets and travel passes, and loyalty services as possible uses of contactless technology. It says the proposal aims to reduce barriers that make it harder for businesses to develop such products.
The CMA’s approach to access fees
The regulator proposes principles for setting commercial terms rather than a specific price. It expects charges to be substantially lower than Apple’s current fees while still fairly rewarding Apple. The proposal therefore concerns both technical access and the terms on which businesses could use it; it does not set a fee that rival services would pay.
Why the regulator says access matters
The CMA says no firm had launched a wallet-type product to compete with Apple in the UK. It contrasts that with the European Union, where alternative payment apps launched after Apple agreed to provide NFC access.
In its Oct. 20 announcement, the CMA said contactless payments accounted for 39% of UK payments, compared with 3% a decade earlier. It also said more than 60% of UK adults use a digital wallet and identified Apple Wallet as the most popular choice. Those figures describe the market context the regulator cited for its proposal; they do not establish that the consultation itself will produce new wallet launches.
Consultation deadline and reported court challenge
The Paypers reported on Oct. 19, citing two people briefed on the matter, that Apple was likely to challenge a CMA decision in court if it were implemented.
The consultation is scheduled to close on Nov. 17, 2026. The CMA says it will decide what to do after assessing the responses.
