Every iPhone Will Become Payment Terminal: Tap Once To Pay & Accept Payments! (How Will It Work)

A new feature shall be introduced which will allow businesses to bypass hardware systems such as Block Inc’s (SQ.N) Square terminals and accept credit card and digital payments with just a tap on their iPhones is being introduced by Apple Inc (AAPL.O).

NFC Technology To Be Used

On Tuesday, Apple said that near field communications (NFC) technology will be used for this feature for making all kinds of payments, which will include those between iphones. Stressing on the privacy feature of the service, Apple clarified that no one would know what was being purchased or who was purchasing it.

The company said in a statement that the in the spring of 2022 in the United States, Fintech services Stripe and Shopify Point will be the first to offer the “Tap to Pay” feature to business customers.

Billy Alvarado, Stripe’s chief business officer said that whether it be a salesperson at an internet-first retailer or an individual entrepreneur, everyone will be able to accept contactless payments on their iPhones.

Apple Is Beefing Up Their Fintech Services

Apple has been taking efforts in the fintech services and beefing them up. In 2019, they launched their credit card with Goldman Sachs (GS.N). Currently, it is also working on their “buy now, pay later” service.

An analyst at Cross Research, Shannon Cross said that Apple views payments as an important standalone business for the company and they are looking to leverage it.

It also shows that if they have decided to venture into contactless payments, then how important these payments are for any business that is up and running.

Shares of Block fell 1.2% in early trading on Thursday, while those of Apple were little changed.