Britain’s Competition and Markets Authority has proposed measures to make it easier for rival payment services to compete with Apple Pay.

The proposals would require Apple to reduce certain access fees and remove technical barriers that currently limit how third-party developers use contactless payment technology on iPhones.

The regulator says the changes could create more opportunities for digital banks and financial technology companies to introduce competing payment services.

Businesses such as PayPal, Klarna, and Revolut could benefit from an environment that gives alternative digital wallets greater access to customers.

Contactless payments have become increasingly popular in Britain, accounting for 39% of all payments, compared with just 3% a decade ago, according to the regulator.

More than 60% of adults use a digital wallet, and Apple Wallet remains the country’s most popular option.

Apple has defended its existing system, arguing that its security measures help protect users’ sensitive financial information.

The company has expressed concern that the proposed approach could weaken privacy and security protections.

The regulator is consulting on the proposals before making a final decision.

The outcome could influence competition in the digital payments industry and determine how easily alternative providers can offer payment services to iPhone users in Britain.

Source: Reuters.