The European Union’s Digital Markets Act (DMA) has unlocked iPhone’s once-exclusive NFC chip for all wallet providers. Apple is now legally required to let competitors tap into its contactless interface—a foundational shift with wide-reaching implications across fintechFintech fintech Short for financial technology, refers to tech-enabled innovation in financial services., big tech, and payments.
Germany is the first to go live. PayPal is already tapping in. But this revolution isn’t just about one player—it’s about a new wallet war where Klarna, Revolut, Curve, N26, and others now have a real shot at the iPhone lock screen.
I. The Regulatory Breakthrough
The DMA mandates that dominant tech platforms must open essential interfaces to competitors. On iOS, that means third-party walletsWallets wallets See Digital Wallets. can now access NFC functionality:
- Tap-to-pay is no longer exclusive to Apple Pay
- Any compliant wallet can now offer contactless on iPhone in the EU
This levels the playing field and lays the groundwork for a radically more open mobile payments ecosystem.
II. Why 2025 is Different
In 2015, few challengers could rival Apple Pay:
- NFC POS penetration was patchy
- Consumer tap behavior was limited
- Banks and schemes weren’t aligned on digital innovation
Today, the dynamics have shifted:
- 95%+ NFC acceptance across Europe
- Consumers are comfortable with mobile wallets
- BNPL, open banking, and rewards ecosystems are mature
- Wallet providers now operate as full-stack fintechs
III. Who Stands to Gain?
PayPal
Already live in Germany with Tap-to-Pay. Strong credit infrastructure, global trust, and online-to-offline integration make it an early mover.
Klarna
BNPL giant with millions of EU users. Could embed installment options directly into NFC taps, removing the need for merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services. integration.
Revolut
Neo-bank with over 30 million users. Offers multicurrency wallets, cards, crypto, and now could add tap-to-pay as a daily habit anchor.
Curve
Aggregates multiple cards into one smart wallet. Ideal fit for users managing loyalty, spend, and limits across accounts.
N26 and Monzo (if UK follows)
Digital banks with sleek UI, card management, and budgeting tools. NFC access could complete their mobile-first offering.
IV. Strategic Advantages for New Entrants
- In-App Credit & BNPL Most challenger wallets offer native credit lines or installment options. Unlike Apple, they don’t need to partner with banks or card schemes to deliver flexible payments.
- Loyalty & Cashback Integration Players like Revolut and Klarna can natively embed cashback or loyalty offers, making every tap more rewarding than Apple Pay’s passive experience.
- Unified Spend View New wallets often aggregate spending across channels and categories. Apple Pay fragments this across different card apps and banks.
- Customizable UX Challenger apps evolve faster—supporting budgeting, goals, crypto, or financial education alongside tap-to-pay.
V. Apple’s Defensive Options
Apple still dominates through frictionless onboarding and OS integration. But it may need to:
- Launch Apple Card and BNPL in the EU
- Allow more reward and loyalty integrations
- Improve multi-channel spend visibility
Failing that, Apple risks becoming just the default—not the best.
VI. RetailerRetailer retailer A merchant that sells goods or services directly to consumers. Considerations
Retailers will benefit from increased wallet diversity—but will need to:
- Manage multiple tokenized cards and routing logic
- Adjust rewards or offers by wallet type
- Track consumer preference shifts in-store vs. online
For fintech-forward merchants, new partnerships could unlock co-branded campaigns, in-app offers, or embedded financing at the POS.
VII. What Comes Next Globally?
If Europe succeeds:
- UK and Australia may follow with similar regulatory pressure
- OEMs on Android may evolve their wallets into fintech platforms
- Developing markets might leapfrog into wallet ecosystems with embedded value
This could drive a future where NFC is not a gatekeeper, but a universal layer across digital identity, payments, and loyalty.
Final Word: From Wallet War to Wallet Renaissance
The DMA didn’t just open Apple’s NFC chip—it opened the possibility for real competition in everyday commerce. PayPal, Klarna, Revolut, and a wave of fintechs now have a chance to make the iPhone their own.
This is no longer about who got there first. It’s about who offers the most value, intelligence, and financial empowerment in a single tap.
Would you switch wallets for better rewards, smarter budgeting, or instant BNPL? The answer may shape Europe’s payment future.
Vibhu is a global payments leader and PhD researcher in real-time payments, dedicated to making payments simpler, smarter, and more inclusive. With 20 years of payments experience across Citibank, Adyen, IKEA, Snapdeal, iPayLinks — and markets spanning India, China, Southeast Asia, Europe, and Australia— he brings a truly global perspective to the future of money. Vibhu is also the founder of PaymentsPedia.com, a knowledge hub where he shares insights on cards, crypto, cross-border flows, and real-time rails.📧 vibhu@paymentspedia.com | LinkedIn