Apple says iPhones will soon take payments with Tap to Pay

Tap to Pay for retailers large and small

Apple has confirmed earlier speculation it intends to turn iPhones into contactless payment terminals, and said merchants will be able to accept Apple Pay and other contactless payments using iPhones and a partner-enabled iOS app.

Your iPhone is already your wallet

Apple has already turned your iPhone into a wallet. Now it’s turning it into the only cash register your local shop needs (given we’re accelerating toward cash free transactions). The company is calling this Tap to Pay on iPhone.

It seems plausible this service may have been what Apple CEO, Tim Cook, alluded to during the recent fiscal call.

What is Tap to Pay on iPhone?

Only available in the US, Tap to Pay on iPhone will let millions of merchants use their iPhone to accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone.

Apple is opening this up, saying that Tap to Pay on iPhone will be available for payment platforms and app developers to integrate into their iOS apps and offer as a payment option to their business customers.

It’s just the latest instalment in Apple’s strategic plans for Apple Pay.

Stripe is in the frame first

Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring. Additional payment platforms and apps will follow later this year.

“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that’s already in your pocket: your iPhone,” said Billy Alvarado, Stripe’s chief business officer. “With Tap to Pay on iPhone, millions of businesses using Stripe can enhance their in-person commerce experience by offering their customers a fast and secure checkout.”

What Apple said

In a press release, 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 — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”

Tap to Pay on iPhone will be available at US Apple Stores later this year.

Even a market store will be able to use this – though I’m surprised there are no apple’s in this image, bar one.

How it works

Apple Pay is already accepted at more than 90 percent of US retailers, and with this new capability, virtually every business, big or small, will be able allow their customers to Tap to Pay on iPhone at checkout.

At checkout, the merchant will simply prompt the customer to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant’s iPhone, and the payment will be securely completed using NFC technology.

No additional hardware is needed to accept contactless payments through Tap to Pay on iPhone, so businesses can accept payments from wherever they do business.

Apple is opening this up with an SDK

I’m pleased Apple is opening this up to partners. Once Tap to Pay on iPhone becomes available, merchants will be able to unlock contactless payment acceptance through a supporting iOS app on an iPhone XS or later device.

The company says it intends to work closely with leading payment platforms and app developers across the payments and commerce industry to offer Tap to Pay on iPhone to millions of merchants in the US.

Payment data is protected by the same technology that makes Apple Pay private and secure. All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn’t know what is being purchased or who is buying it.

Tap to Pay on iPhone will work with contactless credit and debit cards from leading payment networks, including American Express, Discover, Mastercard, and Visa.

Tap to Pay on iPhone will be available to participating payment platforms and their app developer partners to leverage in their software developer kits (SDKs) in an upcoming iOS software beta.

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