Apple Inc plans to launch the long-awaited “Tap to Pay” feature on the iPhone later this year, offering merchants an alternative to Block Inc.’s Square technology, Bloomberg reported.
The option will allow sellers to accept payments through Apple Pay, credit cards and digital wallets without the need for additional hardware, the company said in a statement.
The system is based on near field communication, or NFC. Apple’s plan, which was previously reported by Bloomberg, caused Block’s shares to drop as much as 3.3 percent on Tuesday following the announcement.
“‘Tap to Pay’ on iPhone will provide businesses with a secure, private and easy way to accept contactless payments and unlock new payment experiences,” Jennifer Bailey, vice president of Apple Pay and Apple Wallet, said in the statement.
Stripe Inc will be the first payment platform to offer the feature to customers, with others to be added throughout the year. “Whether you’re an internet retailer or sole proprietor, you’ll soon be able to accept contactless payments on a device that’s already in your pocket: your iPhone,” Billy Alvarado, Stripe’s chief commercial officer, said in the statement.
Apple has been working on the new feature since 2020, when it paid around $100 million for a Canadian startup called Mobeewave that developed technology for smartphones to accept payments at the touch of a credit card.
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