- Apple has released a new iPhone feature called Tap to Pay, which allows users to buy things from retailers in the United States by tapping their phones together.
- Contactless credit cards will be compatible with the new feature.
- Without any additional equipment, the announcement basically transforms iPhones into point-of-sale terminals.
Apple announced on Tuesday that it will unveil a new Tap to Pay feature for the iPhone. Users will be able to tap their phones together to purchase products from retailers in the U.S. Contactless credit cards will be compatible with the new feature.
Without any additional equipment, the announcement basically transforms iPhones into point-of-sale terminals. Block, whose first important product was a smartphone dongle that allowed retailers to take credit card payments, fell 2% in early Tuesday.
Rollout phases for Tap to pay
According to Apple, Stripe will be the first payment operator to offer the service, which will be integrated into Shopify’s point-of-sale system. Shopify’s stock remained flat on Tuesday. On Tuesday, Shopify’s stock stood unchanged.
The service, which is currently only available in the United States, will make use of the iPhone’s NFC chip and accept Apple Pay, Visa, American Express, Mastercard, and Discover.
The Big Tech company’s latest financial services innovation is Tap to Pay. Apple Pay, a contactless payment service, Apple Pay Cash, a peer-to-peer payments service, and Apple Card, a Goldman Sachs-operated iPhone app-oriented credit card, are currently available today in conjunction.
Talking about revenue
The tech giant reported $68.43 billion in services revenue for the year ended in SeptembeApple Pay and the Apple Card are modest components of that segment, but they are expected to grow in the future.
Apple said the feature would be accessed through third-party apps, which will be released later this year. Other payment companies and app developers will be able to develop apps that access the Tap to Pay feature in a forthcoming version of iOS, the iPhone operating system.
