Apple continues to build its stand as the leading innovative mobile tech giant in the world after announcing its plan to introduce a new Tap to Pay feature on iPhone which allows businesses to receive payment seamlessly. The feature would allow compatible iPhones to accept payments via Apple Pay, contactless credit cards and debit cards, and other digital wallets. The interesting part is no additional hardware is required. Merchants get to enjoy this awesomeness with just a download of an app.
Let’s take a deep dive into how the Tap to Pay works and the possibilities it unlocks for businesses.
What is Tap to Pay on and how does it work on iPhone?
In July 2020, Apple acquired payments startup Mobeewave, which created a system that lets shoppers tap a credit card or smartphone on another phone to process a payment. Tap to Pay is notable because, previously, businesses that accepted contactless payments on an iPhone needed to use additional third-party hardware such as the Square Reader dongle.
As it seems, Apple acquisition of Mobeewave is the basis of this technology.
The Tap to Pay feature essentially allows small businesses to large retailers to use mobile devices as a payment terminal — seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone (iPhone XS or newer) through supported iOS apps. For now, it’s limited to businesses and merchants in the US that wish to accept contactless payment.
On purchasing an item from a store, a merchant will ask you to hold your own iPhone or Apple Watch, contactless credit or debit card, or another digital wallet near the merchant’s iPhone, and then the payment will be securely completed using NFC technology.
Now businesses are being empowered and all merchants will need in the future is their compatible iPhones in order to accept and process payments, says Apple.
Businesses that support Tap to Pay on iPhone
Stripe has announced it’ll be the first payment platform to offer “Tap to Pay on iPhone” to their business customers, including the Shopify Point of Sale app, in spring 2022. Additional payment platforms and apps will follow later this year. Apple Stores in the US will also roll out the feature sometime in 2022, says Apple.
Jennifer Bailey, Vice President of Apple Pay and Apple Wallet pointed out that — “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.”
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“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.” She noted.
When will the Tap to Pay feature be available and which iPhone model supports it?
The feature will launch in the US later in 2022. It appears to be exclusive to the US at launch, with no other countries announced yet. Hopefully, as the Tap to Pay feature becomes widely accepted in the US, other countries including Africa.
Although Tap to Pay isn’t ready for you to use yet – the supporting API is available in the iOS 15.4 beta 2 potentially enabling the feature on iPhone XS and later models.
There are older iPhones with NFC – but, for now, the iPhone 6, 7, and 8 models are not on the compatible list.
Tap to Pay on iPhone will also roll out to Apple Store locations in the US later this year according to Apple.
