Apple compromises again! Open NFC payment technology to third parties, but with limited impact in China.
Apple has launched a European NFC payment system, but it has little influence in its home market.
Apple announced that it is opening its NFC payment system to third-party developers in Europe, and it is also the first to allow Apple Pay competitors to use NFC payment chips for iPhone payments. The move was a concession in response to the European Council's accusations against its trusts. Because not everyone loves ApplePay, the company has introduced a feature that makes it easier for shoppers to make mobile payments.
However, for Apple, the launch of NFC may have negative consequences for its ApplePay. If that's the case, then consumers can pay through other companies' phones, losing potential customers for Apple Pay, and thus reducing Apple's revenue. However, in response to antitrust laws from Europe, Apple eventually relented and exposed NFC payment technology to third parties.
However, keep in mind that the launch of NFC payment technology is only available in the European market. In China, NFC payments on iPhones are not widely used because Alipay and WeChat account for the share of mobile payments. Compared with other countries, Chinese prefer Alipay, WeChat and other mobile payment methods, so Apple's launch of NFC payment function does not have much influence in China.
The European Union sues Apple.
Apple has been sued in Europe by antitrust from two countries. First, the European Union accused Apple of setting up a system on iOS phones that restricts third-party access to NFC, a behavior that is considered a monopoly. Apple has combined its mobile payment system, ApplePay, with NFC chips, which makes it impossible for other competitors to implement NFC functionality on the iPhone. This approach is seen as a kind of monopoly of Apple in the market.
Second, the European Union also accuses Apple of unfair competition. With its own software ecosystem, Apple pre-installed some of its own programs on iOS and restricted third-party programs in order to gain more market share. Such an approach is seen as in conflict with the European Union's antitrust regulations.
In response, Apple made a concession by offering to expose NFC payment technology to third parties in Europe. The move is aimed at undermining Apple's monopoly in the mobile payment market, but also to meet the fair standards of the European market.
What impact will Apple's concession have on consumers and the market?
Apple's launch of NFC payments will have a huge impact on consumers, as well as the entire industry. First of all, for users, the opening of NFC payment technology has given users more choices and convenience. In addition to Apple Pay, there are other mobile payment methods that make you more comfortable with your mobile payment methods.
Secondly, from the perspective of the industry as a whole, Apple's launch of NFC payment technology will intensify competition in the industry. Other manufacturers can also apply NFC payment chips to Apple mobile phones, so that consumers have more payment methods. In such fierce competition, major payment service providers are actively carrying out technological innovation to improve their business level, and the ultimate benefit is consumers.
Keep in mind, though, that Apple's launch of NFC payment technology is just one of the antitrust actions against Apple. In addition, Apple also faced other problems, such as using the USB-C interface, modifying the app store, and so on. By March 6, 2024, Apple will have to modify the AppStore to support third-party software** and software. In addition, it is also necessary to replace the battery by 2027. Faced with such demand, Apple faces a huge challenge.
Abstract: Apple recently offered to open its NFC payment system to third-party developers in Europe, and it is the first Apple Pay competitor to apply NFC payment chips to iPhone payments. The move was a concession in response to the European Commission's accusations of its antitrust. The liberalization of NFC payment will have a huge impact on consumers, and at the same time, it will also bring more opportunities to consumers, thereby enhancing the competitiveness of the industry. However, this opening is only for the European region and will not have much impact on users in the United States. In addition, Apple will also face other antitrust prosecutions and modification requirements, such as using the USB-C interface to modify the AppStore, which is a huge challenge for Apple. We'll see how Apple responds to this demand in the future.