Apple working on tech to allow iPhones to directly process credit cards
Small businesses may soon be able to accept credit and debit card payments directly through the iPhone's onboard NFC chip without the need for external hardware.
In August 2020, it was reported that Apple purchased Mobeewave, a payments technology startup that developed a method allowing smartphones to be used as mobile payments terminals.
Now it appears that the Cupertino-based tech giant has plans for the technology -- allowing small businesses to accept payments directly on their iPhones without any extra hardware, according to Bloomberg.
The move would eliminate the need for third-party hardware, such as Block Inc.'s Square payment systems, which currently dominate the market.
Instead, small business owners would be able to tap any tap-to-pay credit or debit card onto their iPhone, allowing customers to pay them directly. This system would rely on the iPhone's near-field communications (NFC) chip and work similarly to tap-to-pay terminals at gas stations and retail locations.
As Bloomberg points out, its not clear whether or not the NFC payment option would be branded as part of Apple Pay, or as an entirely separate service.
Apple has a number of projects involving payment options. For example, Apple Pay, launched in 2013, gives customers the ability to tap their iPhone to pay at any point-of-service that accepts NFC payments.
Additionally, in 2019, Apple introduced its own credit card, the Apple Card, launched in partnership with Goldman Sachs.
Read on AppleInsider
In August 2020, it was reported that Apple purchased Mobeewave, a payments technology startup that developed a method allowing smartphones to be used as mobile payments terminals.
Now it appears that the Cupertino-based tech giant has plans for the technology -- allowing small businesses to accept payments directly on their iPhones without any extra hardware, according to Bloomberg.
The move would eliminate the need for third-party hardware, such as Block Inc.'s Square payment systems, which currently dominate the market.
Instead, small business owners would be able to tap any tap-to-pay credit or debit card onto their iPhone, allowing customers to pay them directly. This system would rely on the iPhone's near-field communications (NFC) chip and work similarly to tap-to-pay terminals at gas stations and retail locations.
As Bloomberg points out, its not clear whether or not the NFC payment option would be branded as part of Apple Pay, or as an entirely separate service.
Apple has a number of projects involving payment options. For example, Apple Pay, launched in 2013, gives customers the ability to tap their iPhone to pay at any point-of-service that accepts NFC payments.
Additionally, in 2019, Apple introduced its own credit card, the Apple Card, launched in partnership with Goldman Sachs.
Read on AppleInsider
Comments
There are so called soft-POS solutions for Android which turn your NFC equipped phone into a POS unit and I would think there are similar third party solutions for Apple too but having the phone manufacturer offer the functionality should make the experience more seamless.
Does the iPad have the NFC capability? I see lots of stores using the iPad as the cashier terminal; if it could also deliver the payment processing in a single unit then. The cellular connection of the iPhone isn't needed is it? Could also be a case for an updated iPod touch.
Any solution would need a dongle or a 'card not present' payment manager (less secure, longer processing time and more expensive for the vendor etc).
Plus if Apple brings a similar solution, I wonder what happens to the Apple pay readers which so many retailers have invested in.
Why would it need to address every possible use case out of the gate? Simply processing credit cards easily and inexpensively would be welcome by many small businesses that accept credit cards and do not need it to run their entire business. I've never seen Toast outside of a restaurant/bar setting and that is only a fraction of the market.