Pietro Cipollone, a member of the ECB's executive board, criticized Apple's NFC modifications, stating that they fail to provide third-party apps full access to the iPhone's Secure Element—a critical component in ensuring competitive parity in mobile payments. The ECB has relayed its concerns to the European Commission, which had been poised to approve Apple's adjustments as early as next month.
According to the ECB, Apple's proposals fall short in several key areas:
- Limited third-party app integration: Third-party payments would remain less user-friendly and slower compared to Apple Pay.
- No offline transaction support: Essential for the digital euro, Apple's current proposal does not support offline transactions.
- Exclusion of Apple Watch: The proposed changes do not extend to Apple's wearable device, limiting third-party app functionalities on the Apple Watch.
- E-commerce disadvantages: The lack of full third-party access to the Secure Element could disadvantage apps in e-commerce settings, where seamless payment processing is crucial.
These shortcomings, as pointed out by the ECB, suggest that Apple's NFC changes might not be sufficient to foster a competitive environment or support the infrastructure needed for the digital euro. This development could potentially influence the European Commission's forthcoming decision on the matter.
