Right now, merchants depend on dedicated payment terminals to accept payments from customers. Apple today announced that merchants will be able to accept payments using iPhone and a compatible iOS app later this year. Even if the customer wants to pay using their credit or debit card, merchants can ask the customers to tap their card on the payments iPhone and receive payments. Apple Pay, contactless credit and debit cards, and other digital wallets are supported through this feature.
This feature will be called Tap to Pay and will be available for payment platforms such as Stripe and app developers to integrate into their iOS apps and offer as a payment option to their business customers. Stripe will be one of the first payment platform to support Tap to Pay.
What they say:
“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”
iPhone XS or later device can be used to accept payments and NFC is the technology that powers this solution. Tap to Pay on iPhone will roll out to Apple Store locations in the US later this year.
Our take:
The ability to accept payments just using smartphones is not new. Samsung implemented this technology in Canada using the technology from a startup called Mobeewave. Apple acquired Mobeewave in 2020 and today’s announcement is the result of the acquisition. Since Apple Pay is accepted by 90% of the retailers in the US, Apple’s Tap to Pay on iPhone will become quite popular in the US in the coming years.
