Keen to maintain its market dominance and unlock new ways for consumers to pay with Apple Pay, Apple recently announced it will soon launch Tap to Pay on iPhone. The service will “empower millions of merchants across the US, from small businesses to large retailers, to use their iPhone to seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other wallets through a simple tap to their iPhone,” Apple said in a statement, adding that there’d be no additional hardware or payment terminal required.
However, rather than using Apple Pay as the dominant force, Tap to Pay on iPhone will be available for payment platforms and app developers to integrate into their iOS apps and offer business customers the chance to use their iPhones as a payment option. Stripe has already been confirmed as the first platform to offer Tap to Pay on iPhone, and other platforms will likely be added to the rounds as they implement changes to their apps and use Apple’s new API.
Speaking of the launch of the new service, Jennifer Bailey, Apple’s 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. In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes to seamlessly accept contactless payments and continue to grow their business.”
The company has said that Tap to Pay on iPhone will be available to participating payment platforms and their app developers under a new software developer kit (SDK) in a future iOS software beta, though there’s no exact date just yet. In theory, Apple could roll out the tech in the next few weeks, and when it goes live in an upcoming iOS release, consumers will be able to pay for goods and services using their iPhones, tapping another iPhone. When the feature launches, merchants will be able to take advantage of contactless payments in their store or on the go, simply by asking customers to hold their iPhone or Apple Watch to their device. What’s perhaps most interesting and revolutionary about the feature is that iPhones will also support contactless credit or debit cards and other digital wallets, fully taking advantage of the NFC technology built into iPhones. Apple has confirmed that users will need an iPhone XS or later to take advantage of the vendor side, though theoretically, all iPhones that support Apple Pay will work with Tap to Pay when it comes to buying.
In announcing the new feature, Apple took the time to highlight the success of Apple Pay in the United States, confirming that 90% of retailers in the United States now accept it. With the new Tap to Pay capability, virtually every business, big or small, will be able to let customers pay via their iPhones and Apple Watches. Tap to Pay on iPhone will also be available at Apple Store locations in the US later this year, though there’s no word yet on when or whether the service will launch in other countries. It’s likely that Apple will need to apply for regulatory approval to launch the Tap to Pay service in other territories, but that it will come in due course as it looks to cement Apple’s position as the top player in payments.
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