Apple Introduces “Tap to Pay” Feature for iPhone, Allowing Contactless Payments

Apple is set to introduce a new feature that will allow businesses to accept credit card and digital payments via their iPhones with just a tap, bypassing traditional hardware systems such as Square terminals. This feature will be launched later in the year, and will use near field communications (NFC) technology to make all kinds of payments, including between iPhones. Emphasizing the privacy feature of the service, Apple has said that it would not know what was being purchased or who was buying it.

Stripe and Shopify Point are the first fintech services to offer the “Tap to Pay” feature to business customers in the US in spring 2022. According to a statement from the company, Stripe’s chief business officer Billy Alvarado said, “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.”

Apple has been working hard to improve its fintech services, launching its own credit card with Goldman Sachs in 2019 and reportedly developing a “buy now, pay later” service. Shannon Cross, an analyst at Cross Research, stated, “Apple views payments as an important standalone business for the company, and they are looking to leverage it. Them venturing into contactless payments is an indication of how important payments are as a business for the company.”

The “Tap to Pay” feature is a significant development, allowing businesses to use a ubiquitous device for accepting contactless payments without the need for any additional hardware. This has the potential to reduce costs and simplify the payment process for businesses. For Apple, it represents another opportunity to strengthen its position in the fintech space.

As the use of contactless payments continues to grow, the market for such services is expected to keep expanding. Apple’s move into the sector demonstrates its commitment to fintech and the importance of payments as a standalone business. By introducing this new feature, Apple has the potential to increase competition in the payments space and challenge incumbents such as Square.

In summary, Apple’s new feature that enables businesses to accept payments using only their iPhones has the potential to change the way businesses approach payments. It will help to reduce costs and streamline the payment process, making it easier and more convenient for businesses to accept payments. Additionally, Apple’s venture into contactless payments shows the company’s commitment to the fintech space and the potential for payments to be a standalone business. This new feature is sure to increase competition in the payments sector, and we can expect to see further innovation from Apple and other players in the field.