Apple has announced that it will release a new Tap to pay feature for the iPhone that would transform the smartphone into a contactless payment terminal. Apple Pay and other contactless payments, including Google Pay, will be accepted by U.S. retailers using an iPhone and a partner-enabled iOS app later this year, according to the company. The feature will be available on iPhone XS and subsequent versions. Payment providers and app developers will be able to integrate Tap to Pay on iPhone as a payment option for their clients into their iOS apps. Through a new Shopify app, Stripe will be the first payment platform to enable customers Tap to pay on iPhone.
Additional payment platforms and apps are expected later this year, according to Apple. Merchants will be able to unlock contactless payment acceptance using a supporting iOS app once Tap to Pay on iPhone debuts. The customer will be asked to hold their iPhone or Apple Watch near the merchant’s iPhone during checkout, and the payment will be made securely via NFC technology. Accepting contactless payments does not necessitate any additional hardware. Customers’ payment data is likewise protected with Tap to pay on iPhone, according to Apple, and all transactions performed through the service are encrypted.
Apple Pay is now accepted by more than 90% of U.S. merchants, according to the company, and this new feature will allow users to check out more quickly. Later this year, Apple Store locations in the United States will be able to use Tap to Pay on iPhone. Apple intends to work closely with payment providers and app developers to expand the number of merchants who accept Tap to pay on iPhone in the United States. Contactless credit and debit cards from a variety of payment networks, including American Express, Discover, Mastercard, and Visa, will work with Tap to pay on iPhone.
In a statement, Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said, “As more consumers tap 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.” In a future iOS software beta, Apple claims Tap to Pay on iPhone will be available to participating payment systems and their app developer partners.
