Apple is Opening Up the iPhone's NFC Chip: What You Need to Know

With the launch of iOS 18.1 this fall, Apple will allow third-party developers to support NFC contactless transactions for payments and more. Right now, the NFC chip is locked down, and it's primarily only used for Apple Pay, but a number of new capabilities will be coming when Apple expands access to NFC.

NFC Capabilities in Third-Party Apps

With NFC access, banks will be able to offer direct contactless payment options that serve as an alternative to ‌Apple Pay‌, but it app developers will be able to do more, too. Some ways Apple says NFC can be used:

• Contactless payments in stores
• Car keys
• Closed-loop transit cards
• Corporate badges
• Student IDs
• Government IDs (coming in the future)
• Home keys
• Hotel keys
• Merchant loyalty and reward cards
• Event tickets

Security Protections

Apple is creating several new APIs that will power the contactless transactions. The APIs will use the Secure Enclave in the iPhone, with sensitive information stored directly on device.

Developers will have to request access to the NFC and Secure Enclave entitlement, sign a commercial agreement with Apple, and pay associated fees. Apple plans to make sure that only authorized developers who meet regulatory and industry requirements and commit to Apple's security and privacy standards can get access to the APIs.

Default Contactless App Options

Once these features go live, iPhone users can open up the app and then hold the iPhone near an NFC terminal to make a payment. So if you want to pay at a store using your bank's NFC payment service, you'd open your bank app and then double-click the side button on the iPhone to initiate a transaction.

Third-party apps will also be able to be set as default contactless apps in the iPhone's Settings app.

Transactions will be verified with Face ID or Touch ID.

Apple Pay and Apple Wallet

The NFC APIs are separate from ‌Apple Pay‌ and Apple Wallet, which is why you will need to open up a third-party app to use its NFC capabilities.

Available Countries

Apple's NFC and Secure Enclave APIs are coming to developers in Australia, Brazil, Canada, Japan, New Zealand, the UK, and the United States.

Support will come to additional locations in the future.

Apple already opened up the NFC chip in the European Economic Area.

iOS 18.1 Launch Date

The new APIs will launch in iOS 18.1, which is an update that Apple is testing at the current time. iOS 18.1 will likely be released a few weeks after iOS 18, and we are expecting to see it sometime in October.

In past years, .1 updates have come out between October 20 and October 25, so the week of October 21 is likely when we will see iOS 18.1 come out.