Asia Tech Wire (Aug 15) -- Apple announced Wednesday that it will begin allowing third parties to use the iPhone's payment chip for transactions after years of pressure from regulators, including the European Union.

The move will enable banks and other services to compete with the Apple Pay platform.

Apple said it will allow developers to use the NFC-enabled payment chip starting with iOS 18.1.

Users will also be able to set third-party payment apps as the default system, replacing Apple Pay.

However, under the new payment method, Apple will still require developers to pay "associated fees" for the use of the NFC chip and enter into a "commercial agreement," according to Wednesday's statement.