Apple announces the Tap to Pay function on iPhone, it will allow the phone to become a payment terminal for merchants. It will be available sometime in 2022. A recent leak had already unveiled the project.
The iPhone as a contactless payment terminal for merchants
Merchants will be able to use an iPhone as a payment terminal to carry out transactions. The iPhone will accept payments with Apple Pay, as well as with credit cards thanks to contactless. Other digital wallets will also be compatible.
Stripe will be the first payment platform to offer Tap to Pay on iPhone to its business customers, including the Shopify Point of Sale app this spring. Other payment platforms and applications will follow later this year.
Once Tap to Pay on iPhone becomes available, merchants will be able to accept contactless payment through an iOS app on an iPhone XS or later. During checkout, the merchant will simply invite the customer to hold their iPhone or Apple Watch to pay with Apple Pay, their bank card using contactless or another digital wallet, and the payment will be made securely using the NFC. No additional product is required to accept contactless payments through Tap to Pay on iPhone, so businesses can accept payments from anywhere they do business. Virtually any business, large or small, will be able to allow their customers to use the novelty on iPhone during checkout, according to Apple.
What about privacy? Apple ensures that its system is based on the same technology as Apple Pay. All transactions are encrypted and managed by the secure iPhone enclave. Besides, Apple does not know what you are buying and does not know the identity of the buyer.
Only in the United States initially…
“Tap to Pay on iPhone will provide businesses with a safe, private and easy way to accept contactless payments and unlock new checkout experiences using the power, security and convenience of iPhone”said Jennifer Bailey, Apple’s vice president for Apple Pay. “Working with payment platforms, app developers and payment networks, we’re making it easier than ever for businesses of all sizes — from freelancers to large merchants — to securely accept transparent contactless payments and continue to grow their business”.
For the moment, the iPhone in payment terminal with Tap to Pay will be available in the United States. Apple says nothing for the international, which is a shame. Also, the feature will soon debut with an iOS beta. It is possible that it will be with the next beta of iOS 15.4. We are currently on the first.