This Apple News Could Change Your Life

The new iPhone 16 models hit stores today, but there’s some other Apple (AAPL) news that might impact you more.

Months after the filing of an antitrust case in the U.S., the company announced it’s opening the technology that powers Apple Pay to outside developers. That might not sound as exciting as a fancy new phone feature, but it could have serious repercussions for the tech industry – and consumers worldwide.

The Rise of NFC Payments

Apple Pay launched in 2014 and is now accepted at 85% of retailers across the U.S., according to the company. It runs on NFC (near-field communication) technology, which also powers Google Pay from Alphabet (GOOGL) and Samsung Pay.

The technology uses a radio frequency meant for communication at close ranges. Place a phone with NFC payments enabled near a compatible terminal and voila! You’ve just paid for coffee without taking out cash or a credit card.

More than half of U.S. consumers (51%) use contactless payments, according to CNBC, citing a survey from MasterCard. During the pandemic, Americans were less keen on handling cash and cards, leading to a spike in the use of NFC payments.

Apple Pay has become very popular. But other apps weren’t able to use the product unless it was through Apple Wallet, which meant giving Apple a 0.15% cut of every transaction. That led to new EU regulations and an antitrust case in the U.S. Now, things are changing.

Future of NFC

Apple announced it’s giving third-party developers access to Apple Pay, meaning apps will be able to use the technology on iPhones without sacrificing a percentage of each financial transaction.

That could incentivize companies to embrace NFC in a whole new way, said The Verge. In the future, your favorite bank, retail store, airline, coffee chain, or other business might offer customers the ability to pay, use discounts, and collect rewards points directly through their apps. Or the technology could allow you to share files more easily or scan a virtual badge to walk into work.

Of course, developers just got access to the technology, so don’t expect new NFC features from your favorite iOS apps anytime soon. When they do arrive, customers might finally feel more comfortable leaving their physical wallets at home.

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