Apps can now use iPhone's NFC chip. New software ideas inside.

Several days ago, Apple announced that they would let developers use the iPhone's NFC chip:

Starting with iOS 18.1, developers will be able to offer NFC contactless transactions using the Secure Element from within their own apps on iPhone, separate from Apple Pay and Apple Wallet

What this means: When you pay for something using Apple Wallet, in the background, you're using the iPhone's NFC chip:

You're also using the iPhone's NFC chip when you go to verify a ticket you've added on Apple, for example.

The overall pattern is that we're using the iPhone's NFC chip when we want to authenticate ourselves in an easy manner.

As a developer, you'll now be able to offer in-app contactless transactions for things like in-store payments, car keys, closed-loop transit, corporate badges/student IDs, home keys, hotel keys, merchant loyalty and rewards cards, and event tickets.

Let's take a closer look at each.

What you'll be able to build thanks to this update

Apple also published a more comprehensive piece about their new API.

There, they outlined the "use-case" categories your app must meet in order to get approved.

These are the things you'll be able to build thanks to Apple opening up their NFC chip:

• In-store NFC payments. Users pay for something using Apple's NFC chip (think: Apple pays).

• Car keys (virtual keys). The ability for users to lock/unlock their car.

• Closed-loop transit. You could sell transit tickets, which get validated using the NFC chip.

• Corporate badge access. The ability to enter a corporate building using your NFC chip.

• Virtual home keys. Users can enter their homes using only their phones.

• Hotel Keys. Users can enter their hotel room using only their phones.

• Student IDs. Users can identify themselves with a phone, instead of a student card. 

• Merchant loyalty/reward program. If you offer a loyalty program, you can get people to identify themselves using their iPhones.

• Event ticket (NFC-enabled tickets). Instead of printing tickets, people could verify that they bought the ticket using an iPhone.

I don't know about you, but reading through these items helped me come up with several potential startup ideas:

• A platform that manages virtual keys for homes, offices, and cars. Partner with smart lock manufacturers and car companies to create a seamless, keyless experience.

• An event management system that uses NFC for ticketing, access control, and cashless payments at concerts, festivals, and conferences.

• A universal loyalty program aggregator that lets users manage all their merchant rewards in one place, using NFC for identification and point redemption.

• A comprehensive student ID system for universities, integrating access control, payments, and attendance tracking through NFC-enabled smartphones.

• A hotel management platform that streamlines check-in, room access, and in-hotel purchases using NFC technology.

• An enterprise-level access control system that replaces traditional ID badges with smartphone-based NFC authentication.

• A ticketing app for music festivals and theme parks, managing access, payments, and social media integration.

  The gotchas

  The NFC and SE APIs will be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the U.K., and the U.S. in an upcoming developer seed for iOS 18.1.

Apple said that "additional locations will follow soon" but didn't provide a concrete date.

You'll also need to pay a fee. Apple didn't specify how big the fee will be; I expect it won't be a large sum since that would open up the opportunity for a new lawsuit.

The third thing is that you'll need to meet a few security standards and privacy requirements (for processing personal data).

My guess is that there'll be a platform (an API built on top of Apple's API) to make this more streamlined.

The important thing for now is that Apple is no longer a closed-wall garden, and it's founders like you who'll make the most out of this update that will get the first-mover advantage.