Apple has announced plans to introduce a feature called “Tap to Pay on iPhone”. This functionality will allow users to simply bump handsets (and the Apple Watch) to send and accept payments.
The technology is set to roll out in the US later this year for users with an iPhone XS or later. Of course, it will support Apple Pay, as well as other digital wallets, third-party payment platforms and contact-free credit and debit cards.
All transactions made using this method will be encrypted, so Apple will not know what is being purchased or who is buying it. Stripe will be the first payment platform to make Tap to Pay on iPhone available to its business customers, including the Shopify Point of Sale app this spring. Other payment platforms and apps will follow later in 2022.
Users have been expecting this feature to be announced for months now, after it emerged that Apple had purchased Mobeewave, a Canadian startup that was paving the way for smartphones to accept credit card payments.
The announcement of Tap to Pay on iPhone could also be a blow to Android, with smartphone owners based on that platform potentially finding it less convenient in future to make purchases in stores that prioritize support for Apple’s new technology.