Following statements to the result, the European Commission states it’s considering setting rules that would provide payment services a right to enter “infrastructure,” such as the NFC chips installed within smartphones. These chips allow tap-to-pay services like Apple Pay and Google Pay (previously known as Android Pay).
The statement comes three months behind the EC. It’s examining Apple’s (AAPL) App Store and Apple Pay policies.
In the situation of Apple Pay, the EC declared it was concerned that Apple Pay is the single tap-to-pay solution enabled on iOS and iPadOS devices. The agency additionally told it was examining alleged limitations on access to Apple Pay by competing products running on Apple devices and (without extending) how Apple’s terms and conditions for promoting Apple Pay on websites and applications may deteriorate rival(s) and degrade
choice and innovation.
While Google (GOOG) provides third-party payment services like Samsung Pay to work on Android device’s NFC chip, Apple has reduced such access on its platforms, quoting security concerns. In a report, the company requested that law that manages a company’s technical access to hardware and software security will finally put clients at risk and smother innovation while replying that it will work with the EC to help them comprehend the benefits of Apple Pay.
Should the EC benefit in starting up access to the NFC chips on Apple devices, PayPal could answer by starting its tap-to-pay payments service
PayPal accounts are (accompanying with credit and debit cards) established as a payment alternative for Apple Pay, Google Pay, and Samsung Pay. But with the company banned from allowing such a service to iPhone users, PayPal has abstained from launching a PayPal-branded tap-to-pay service.
Nevertheless, with coronavirus driving more critical interest in contactless purchases, PayPal has been working hard to combine QR code payment solutions in the PayPal and Venmo mobile applications (Apple Pay, it should be regarded, might get QR code support too). And CEO Dan Schulman has indicated PayPal is also engaged in launching its tap-to-pay service.
During a recent JPMorgan conference talk, Schulman said that the company wants to
make a tap-and-pay [service]. Not only do they desire to be installed in all of the [third-party tap-to-pay services], whether that be Google Pay or Samsung Pay or even Apple Pay, but they want to have their pay capacities.
Square, which has seen enormous usage increase for its Cash App in current months, could also conceivably start a tap-to-pay service if it gets access to iPhone NFC chips.
Square could combine the service with its Cash App and — given that its card users previously support Apple Pay and Google Pay — start a software update to its mobile point-of-sale (POS) apps that support the many businesses that use Square’s POS platform to help a Square tap-to-pay service.
