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Sources Paypal Nfc European Commission

Sources Paypal Nfc European Commission

Sources Paypal Nfc European Commission

The European Commission (EC) has been active in promoting the adoption and use of NFC technology in Europe, as it offers a convenient and secure way for individuals to make payments and access digital services. The EC has also set standards for interoperability between different NFC systems to encourage their widespread use.

The European Commission alleges Apple has misused its dominant market position, blocking competitors access to contactless payments technology on iOS systems. According to the antitrust investigators, Apple has abused its dominant position because competitors cannot offer contactless payments that are NFC-enabled on iPhones in order to develop other mobile wallets and to compete reasonably with Apple Pay on iOS devices. According to the regulators in Brussels, the key problem is that NFC is available on nearly every payment terminal, yet only Apple Pay is capable of communicating wirelessly to the payment terminals using NFC.

Kipers point is that companies such as PayPal, Venmo, and banks cannot provide similar NFC experiences for iPhone users through apps such as the native PayPal app. By restricting access to the standard technology used to make payments without a touch with a mobile device at stores (near field communication (NFC) or tap-and-go), Apple limits the market competition in the iOS mobile wallet space.

Apple Pay uses specialized radios called near-field communication (NFC) chips to enable the iPhone to function as a contactless credit card. The devices communicate wirelessly with Point-of-Sale systems using near-field communication (NFC), with an embedded Secure Element (ESE) for secure storage of payment data and performing encryption functions, and Apples Touch ID and Face ID for biometric authentication.

ProsCons
ConvenientExpensive
VersatileNot free of risks
Seamless CommunicationDifficult to adopt
More Secure than Credit CardsSmall radius
Pros and Cons of NFC technology.

NFC on iPhone is unique for users of their proprietary payment platform. It is worth noting that Apple has recently opened up the NFC chips within the iPhones for use by Apple developers for use in Apples Tap to Pay feature, which turns iPhones into card readers. New ATMs with Apple Pay support are equipped with NFC readers, as well as logos, that Apple Pay users are used to seeing from their collaborative projects since their inception.

Apple Pay has arguably since become the worlds most widespread NFC-based payment system; you could argue Apple has done more than most to overcome the original resistance from consumers toward mobile payment systems. The European Commission believes Apple Pay has benefitted by being the only NFC-enabled payment wallet available for iPhone users. In its preliminary findings, the Commission said that Apple has prevented developers of mobile wallet apps from having access to Near Field Communication (NFC) or Tap & Go technologies on iOS devices, in a move that benefits its own service, Apple Pay.

Its view takes issue with the decision of Apple to block mobile wallet app developers access to necessary hardware and software (NFC input) on its devices, in a move that benefits Apples own solution, Apple Pay, The Commission said. The antitrust findings allege that Apple is restricting competition by not allowing other mobile wallet developers access to NFC chips. The company further claims that it is blocking third parties without control over NFC chips in order to safeguard phone security, and at the same time provide an easy and consistent payments experience.

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Apple says that giving other platforms access to iPhones NFC would leave iPhones susceptible to attacks. The EU believes Apple is abusing considerable market power by restricting access to the NFC technology on its devices to Apple Pay, at the expense of competitors and consumers. This argument is likely to fail to convert regulators to Apples side, but it could help the company to argue for a right to demand a cut of any future transactions made using its platform over services provided by third parties.

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Apple Inc. is starting this year to let third parties accept payments using iPhones NFC chips – a feature targeted at smaller businesses – but still will not allow consumers on competing services to do so. As Bloomberg notes, Apple is not letting competing services use the chip for making payments on an iPhone. Apple Inc. allows its iPhone payments system only to utilize the iPhones NFC chip, which hinders PayPal Holdings Inc. and other apps, including Squares Cash app and services from Samsung Electronics Co. and Alphabet Inc.s Google.

Online payments firm PayPal is reportedly behind a European Commission (EC) decision to closely examine the way Apple locks down NFC payments on its iPhone hardware. PayPal Holdings Inc. helped spark the official antitrust complaint against Apple Inc. and Apples payment systems, raising concerns to the EC, according to sources familiar with the matter. Citing sources with knowledge of the matter, the report by Bloomberg said that PayPal helped spur a formal antitrust complaint against Apple and its payments platform with the European Commission.

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PayPal, an Apple Pay rival, was among several companies to file informal complaints over how Apple restricted third-party apps access to the iPhones NFC capabilities, in turn leading to a EU Statement of Objection > against Apple. Now, Bloombergs report shows PayPal is among those supporting an EU antitrust complaint about its own payments platform.

The European Commission claimed Apple blocked competing services from gaining access to the hardware and software in Apple devices that enabled interactions with checkout terminals at stores, known as Near Field Communication, or NFC. The charge of unfair competition is certainly dismissed, after all, Apple devices have more than enough financial and payments apps — you just will not find one that relies on NFC — but Apple continues to fight the securities angle.

Whereas the more flexible, open-source Android OS has allowed companies including Samsung, American Express, and Skrill to develop companies including their own Samsung-branded contactless payments apps to be more flexible, no Apple Pay alternatives for iPhone users are available. Android, a competing smartphone OS maintained by Google, does indeed let third-party apps access a phones NFC chip, meaning that Android users have a choice of smart wallets with contactless capabilities from companies including Google, Samsung, PayPal, and others. On March 8, 2016, ExxonMobil formally launched support for Apple Pay in its Speedpass+ iOS application, which allows customers to pay for gas or carwashes directly from an iPhone, eliminating the need for a physical Speedpass NFC keychain token at the transaction point.

During events, I would guess that Apple would try to claim those complaining about Apples business practices with mobile payments are trying to cash in on their own efforts, considering that other attempts at creating systems as popular as theirs are already failing.

Is PayPal accepting Apple Pay?

In its ecosystem, PayPal will accept Apple’s payment solutions, enabling Apple Tap to Pay on iPhone for the Venmo and PayPal apps. Additionally, Apple Pay will be added as a payment option in PayPal’s checkout processes.

What is the PayPal NFC initiative?

The PayPal NFC initiative is a partnership between PayPal and the European Commission to promote the use of mobile payments and contactless technology in Europe. The initiative aims to make it easier and more convenient for consumers to make purchases using their mobile devices.

How does PayPal NFC work?

PayPal NFC allows consumers to make payments by tapping their mobile devices on contactless payment terminals. Users can link their PayPal account to their mobile device and authorize payments using their fingerprint or a PIN code. The technology is designed to be secure and easy to use, with no need for physical cards or cash.

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