Apple to Open iPhone Tap-to-Pay for Third-Party Apps with iOS 18.1

Apple is set to expand the capabilities of its iPhone NFC chip with the release of iOS 18.1. For the first time, developers will be allowed to offer in-app NFC transactions using the Secure Element, a feature previously exclusive to Apple Pay and Apple Wallet.

With this update, users will also gain the ability to set a default contactless payment app, accessible by double-clicking the iPhone’s side button—a function that was previously reserved for Apple Pay alone.

This change represents a significant shift for iPhone users and developers alike. It opens the door for a broad range of new applications, including “in-store payments, car keys, closed-loop transit, corporate badges, student IDs, home keys, hotel keys, merchant loyalty and rewards cards, and event tickets.” Until now, third-party apps were limited to simply reading NFC tags, but iOS 18.1 will change that landscape.

Apple’s press release mentions that support for government IDs will be added "in the future," suggesting even more functionality to come.

The new NFC APIs will be available to developers in countries such as Australia, Brazil, Canada, Japan, New Zealand, the UK, and the US as part of the upcoming iOS 18.1 developer beta. Apple plans to roll out these features to additional regions later. However, developers wishing to take advantage of these new capabilities will need to “enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees.”

This development comes in the wake of Apple’s commitment to open iPhone NFC payments to third-party providers, following a European Commission antitrust investigation that has made these changes legally binding.