Apple today announced a new feature for the iPhone that will allow small businesses to use the handset to accept Apple Pay and other contactless payment methods using an iPhone; no other hardware or POS terminal will be required. Outside of the handset, a special app will need to be installed.
Named Tap to Pay on iPhone, the feature will also be made available for developers to add to their iOS apps. The first payment platform to offer Tap to Pay on iPhone will be Stripe. Later this year we should see this offered on more apps and payment platforms.
Apple’s Tap to Pay on iPhone will allow merchants to receive payments right where they work
Tap to Pay on iPhone will be compatible with 2018’s iPhone XS or later. When it is time to pay, the merchant will ask the customer to hold their phone or Apple Watch, a contactless credit or debit card, near the merchant’s iPhone and the magic of NFC connectivity does the rest of the work. The advantage is that merchants will be able to collect payments from wherever they happen to do business.
Tap to Pay on iPhone allows merchants to accept payments anywhere they do business
Apple’s Jennifer Bailey, who is vice president of Apple Pay and Apple Wallet, said, “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.”
With 90% of U.S. retailers already accepting Apple Pay at checkout (that figure comes from Apple), almost every business will be able to offer their customers the ability to make a payment using Tap to Pay on iPhone. And Apple is putting your money where its mouth is with plans to have the new feature in use at all Apple Stores in the U.S. sometime later this year.
The new feature is backed by encryption to keep all transactions private and secure
What about the “P” word you ask? Well, Apple is using the “E” word to make sure that it or no one outside of those involved in the purchase knows what is going on. The “P” word, of course, is privacy and the “E” word is encryption. Or as Apple says, “With Tap to Pay on iPhone, customers’ payment data is protected by the same technology that makes Apple Pay private and secure.”
Apple hopes to offer the new feature to millions of merchants and notes that it will work with contactless credit and debit cards from major names in that space. These are names that you are familiar with such as American Express, Discover, Mastercard, and Visa.
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. With Tap to Pay on iPhone, millions of businesses using Stripe can enhance their in-person commerce experience by offering their customers a fast and secure checkout.”
Apple is hoping that this new feature will generate more demand for iPhone units from retailers and those who in service industries that work in the field.
