Apple warns of risks from German law to open up mobile payments

Marco Green
November 17, 2019

"We fear that the draft law could be harmful to user friendliness, data protection and the security of financial information".

Particular finance is the new battleground for massive tech, with Google, Amazon and Facebook-the latter by way of its controversial Libra crypto currency-also looking for to tap the perhaps beneficial but politically sensitive marketplace.

At the moment, traditional bank payment apps can't access the Near Field Communication (NFC) chip in the iPhone or Apple Watch, and have to resort to clunky data transfer methods such as QR codes.

Predictions are that contact-less payments using smartphones will replace the need for wallets or pocketbooks that are stuffed with cumbersome cash, cards and commuter passes. The legislation didn't specifically name Apple nor Apple Pay, but it basically means Apple and Apple Pay.

Amid a rising chorus of complaints, the European Union is eager to demonstrate that it is ahead on this issue after receiving years of criticism for its slow response to the rise of Google, Facebook and Amazon.

On the 2d, light financial institution cost apps can not entry the Shut to Self-discipline Dialog (NFC) chip in the iPhone or Apple Observe, and acquire to resort to clunky facts transfer programs equivalent to QR codes. Apple is no stranger to anti-trust allegations on European shores as it was previously investigated by the European Commission over Apple Pays exclusive integration within iOS including the lack of NFC payments for third-party apps. "People see that it becomes increasingly hard to compete in the market for easy payments".

The law highlights the growing desire in Germany for tighter regulation of USA technology companies.

"We are surprised at how suddenly this legislation was introduced", Apple said on Friday.

In the latter case, it stands to reason that requiring users to open third-party apps specifically to make payments would be considerably more cumbersome than the way in which Apple Pay now works; although Apple could certainly redesign iOS to allow for other default payment apps, it probably has little incentive to do this unless laws specifically force it to, and it doesn't appear that the new German regulations are even close to that specific.

Other reports by Click Lancashire

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