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

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.

apple pay contactless terminal
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 did not implement HCE because doing so would lead to less security on Apple devices. Google likely selected this implementation because Android software is used in a variety of hardware devices offered from many different companies other than Google, and therefore had to select a software-centric solution, even though it is less secure than a secure element-based implementation.

Apple, which offers a tight integration between the operating system and its own hardware, is able to offer a fully integrated solution that is superior to Android's approach.

In response, Google denied the allegation that it had made a security trade-off in implementing the HCE system.

"Our payments apps are immensely secure … our HCE system, which is used by a very large number of banks all around the world, is audited directly by the banks … we would refute the suggestion our HCE environment is in any way insecure," Google president of partnerships in the EMEA region Diana Layfield told the committee on Monday afternoon. "I would argue the user experience on Google Pay is equal to that of Apple Pay."

The Australian parliamentary committee is still considering the arguments submitted. Elsewhere, the EU is currently considering forcing Apple to open up its NFC payment technology, and earlier this year, Germany passed anti-money laundering legislation that requires Apple to grant payment service providers access to its technical infrastructure.

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...

Top Rated Comments

Porco Avatar
52 months ago
As with a lot of this stuff, if Apple were the only smartphone makers I would completely support the involvement of government and/or lawsuits to allow for fair competition. But they’re not, alternatives exist elsewhere and people buy iPhones understanding the choices and consequences (some good, some bad, mostly subjective). That is competition and choice.
Score: 34 Votes (Like | Disagree)
ruka.snow Avatar
52 months ago
Not fond of having the NFC chip compromised by any government or third party.
Score: 28 Votes (Like | Disagree)
alba_83 Avatar
52 months ago
This makes no sense to me; and I certainly have no sympathy for the banks.

In Australia, we have extremely widespread adoption of NFC/contactless payments. You can literally find yourself in shops that don’t take cash at this stage.

Some of the larger banks like NAB held out on using Apple Pay and now it seems they’re crying foul because it turns out it’s a wildly popular payment method and their own implementations are ridiculous (an NFC ring, anyone? I kid you not).
Score: 19 Votes (Like | Disagree)
nikaru Avatar
52 months ago

It took years before the big four Australian banks and Apple could come to an agreement over Apple Pay. Although it’s been up and running for maybe a couple of years now, Apple users in Australia were years behind with the functionality enjoyed by Android users and in many other countries. If these actions lead to a further relaxation over NFC usage and the ability to use Myki mass transit cards with Apple, then it will be a good thing. At the moment, and for several years, Android users have been able to use an electronic Myki card on their phone for trains and trams. iOS users are still waiting for this functionality, with currently no rumours that it will ever be available.
Probably there is a cartel between banks in Australia, because I don't believe that out dozens or even hundred of banks and card issuers, not a single one is able to reach an agreement with Apple over Apple Pay implementation.

The Australian parliament should investigate that, instead of imposing anything on Apple IMO.
Score: 14 Votes (Like | Disagree)
Mac4Mat Avatar
52 months ago
If some of these ill informed governments carry on, it will stifle innovation and I don't say that in defence of Apple, but innovation in general.

When a company spends millions/billions developing products, and mindful of security, many customers use that as an indicator reason for their purchase.

If we take everything Apple away from Apple, then where is the motivation for development, for security, etc.

I do wonder sometimes if these government paper pushers have another agenda altogether, i.e. in making technology less secure and less private, to enable more and more intrusion into everyone's lives.

Consumers CHOOSE what to buy, and they know what they are buying. I don't want some government no name fighting a corner in my name, when its not what I want, and not what many customers want.

Now when it comes to taxation, that's a different story....don't let any of the IT behemoths get away with paying negligible taxes, but leave them to develop their products, when governments can in many cases even get a decent computer system up and running in their own governments!
Score: 14 Votes (Like | Disagree)
unsynaps Avatar
52 months ago
You know. I always have to look at this stuff in a particular way that makes me go WTF.

You release a product. It's a superior product. Other people try to make same product, but their version is anything from crap to not good enough. They go out of business. Superior product remains unchallenged because they are well a superior product, and no one can seem to make one better.

Monopoly because of their own success. Just sounds stupid to me.
Score: 14 Votes (Like | Disagree)