Apple will turn iPhone devices into payment terminals through Tap-to-Pay feature

Deepak Gupta February 9, 2022
Updated 2022/02/09 at 4:38 AM

Apple is introducing a new feature that will allow businesses to accept credit cards and digital payments with just a tap on their iPhones, bypassing hardware systems like Block’s Square terminals.

The feature, to be launched later this year, will use near-field communication (NFC) technology to make all types of payments, including between iPhones, Apple said on Tuesday. The tech giant added that it wouldn’t know what was being purchased or who was buying it, stressing the services’ privacy feature.

Fintech services Stripe and Shopify Point will be the first to offer the “Tap to Pay” feature to enterprise customers in Spring 2022 in the US, the company said in a statement. declaration.

“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you’ll soon be able to accept contactless payments on a device that’s already in your pocket: your iPhone,” said Billy Alvarado, business director at Stripe.

Apple has been improving its fintech services. It launched its own credit card with Goldman Sachs in 2019 and is working on a “buy now, pay later” service.

“Apple sees payments as an important standalone business for the company and is looking to capitalize on it,” said Shannon Cross, an analyst at Cross Research.

“Their venturing into contactless payments is an indication of how important payments are as a business to the company.”

Block shares were down 1.2 percent in early trading on Thursday, while Apple’s was little changed.

© Thomson Reuters 2022

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