Apple Take On Square With ‘Tap To Pay On iPhone’
Apple has announced a new iPhone feature that will allow small business to use their device to accept Tap-And-Go style payments.
Named Tap To Pay on iPhone, the feature requires no other hardware or point of sale terminal but an iPhone, and allows businesses to accept Apple Pay as well as other digital payment methods. It will be compatible with 2018’s iPhone XS or later
The system uses the iPhone’s near field communications chip, which is also used for Apple Pay.
Developers will also be able to add the technology to iOS apps. Stripe has partnered with Apple to offer Tap to Pay on iPhone, and many are expected to follow. As Apple explained, “Apple Pay is already accepted at more than 90 percent of US retailers, and with this new capability, virtually every business, big or small, will be able allow their customers to Tap to Pay on iPhone at checkout.”
This is obviously a big worry for Jack Dorsey’s Square, the current market leader for tap-and-go payments. So far, stocks in parent company Block haven’t been too heavily impacted, falling a modest -0.57 per cent in after hours trading.
Bloomberg reported last fortnight that Tap To Pay has been in the works for two years, bolstered by the company’s A$140 million purchase of Mobeewave.
Mobeewave developed the software that allows iPhones to accept payments.
“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,” explained Jennifer Bailey, VP of Apple Pay
“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.”
Privacy is obviously a big concern, and Apple have a fairly strong record when it comes to this.
They promise: “With Tap to Pay on iPhone, customers’ payment data is protected by the same technology that makes Apple Pay private and secure
“All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn’t know what is being purchased or who is buying it.”