In an effort to foster competition and innovation in mobile payments, Apple has announced plans to open up its tap-and-go payment system to rival companies in the European Union (EU). According to a recent report by Reuters, the EU antitrust regulators are expected to approve this change as early as next month, following tweaks to certain terms.

Currently, iPhone users in the EU can only make tap-and-go payments through Apple's Wallet app. However, by unlocking the Near Field Communication (NFC) chip on the phone, Apple will allow other apps to directly access this feature. Users will soon have the ability to choose a preferred payment app, enabling banks and other payment providers to utilize the payment system without Apple serving as an intermediary.

This move not only holds potential for reducing fees paid to Apple, but it could also mean that transactions made on public transit systems, such as subway journeys, may be rerouted to the transportation companies themselves. While this change is specific to users in the EU, governments worldwide, including those in the U.S. and U.K., are likely closely monitoring its implementation, considering similar alterations for their citizens.

Despite the potential benefits, there are concerns regarding the safety and trustworthiness of alternative apps compared to Apple Pay, which has built a reputation for secure and efficient transactions since its introduction in 2014. Some users may be hesitant to trust public transport companies or additional third-party apps with access to their financial accounts.

Nevertheless, banks may seize the opportunity to encourage users to switch to their own payment apps, as this change could save them from paying a commission to Apple. It remains to be seen whether consumers will embrace this shift or maintain their loyalty to the established Apple Pay ecosystem.

The Reuters report notes that the approval date for this new feature by the European Commission may still change, with May being the most probable month for its implementation. The timing is subject to Apple finalizing the necessary technical details.

Overall, the forthcoming opening of Apple's tap-and-go mobile payment system to rival companies in the EU marks a significant milestone in the European digital landscape. While the move has the potential to drive competition and reduce fees paid to Apple, concerns regarding trust and safety may play a role in user adoption as alternative payment apps enter the arena.

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