I-Phone Transform Handsets into Payment Terminals: Apple has announced a new feature that will enable businesses to accept credit cards and electronic payments with a single tap on their iPhones and bypass hardware systems like Block’s Square terminals.
The feature, which is scheduled to launch later this year, will use close field communications (NFC) technology to make all sorts of payments, including those between iPhones, Apple stated on Tuesday.
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The tech giant said it wouldn’t know the item being bought or the buyer and emphasized the privacy features.
Fintech-related solutions Stripe and Shopify Point will be the first to provide a “Tap to Pay “Tap to Pay” feature for business customers starting in early 2022 in the US, the company said in an announcement.
“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that’s already in your pocket: your iPhone,” said Billy Alvarado, Stripe’s chief business officer.
Apple has been enhancing its fintech offerings. Apple has created its credit card along with Goldman Sachs in 2019 and is currently developing the possibility of a “buy now, pay later” service.
“Apple views payments as an important standalone business for the company, and they are looking to leverage it,” said Shannon Cross, an analyst at Cross Research.
“Them venturing into contactless payments is an indication of how important payments are as a business for the company.”
Block’s shares Block was down 1.2 percent in the early trading this morning, while shares of Apple were unchanged.
