Will Apple’s new Tap to Pay make payments easier?

Technology has never ceased to evolve when it comes to providing convenience in monetary transactions. From SMEs (Electronic Purses), payment systems have come a long way to contactless payments which are becoming more democratic. NFC (Near Field Communication) technology has a lot to do with it and has developed slowly. Considering these market developments, the Apple brand decides to go even further with its new invention. But before we dive into it, let’s go back to some basics.

tap to pay iphone tpe

The evolution of payment solutions and the springboard of NFC

The traditional bank card and TPE (Electronic Payment Terminals) are now almost ”old fashioned”. After the rampant development of the internet, online payments have become more and more developed. Initially, payment on the net required the entry of bank details in order to initiate the payment process, but today several paths lead to Rome. A few years ago, new inventions were born and facilitated the process: Electronic banking wallets and NFC which allows the iPhone to analyze identity cards for example.

The development of payment systems

E-wallets are one of the many ways that payment solutions have evolved. These are specific processors allowing to carry out several types of operations on line; purchase of items, financial transactions, etc., all without entering your bank details. The principle is simple: The electronic wallet involves an account that you create in your name with the portfolio management organization of your choice (via its site or application). The account contains your personal details linked to the wallet, as well as the bank details of one of your payment methods that the wallet will secure for you. This avoids you having to enter your bank details for each online transaction and protect your sensitive information with the manager who is responsible for archiving them securely. You then only have to partially enter your created wallet identifiers (the authentication server will take care of the rest) and your operation will be completed in two or three clicks! In a connected world where threats are increasingly persistent and pernicious, this reduction in data disclosure has been a welcome development.

The massification of payment solutions: Case of online casinos

Given the interest of the French for online games of chance, very popular and boosted even more by the accelerated digitalization which followed the covid, online casinos have fully integrated virtual banks as means of payment for their expansion. In addition to conventional bank cards, bank wallets, for example, have the particularity of facilitating the transfer of winnings and the deposit of funds for bets. This has therefore only reinforced the reputation of online casinos in view of the security offered by these electronic wallets. Thus, it is enough to consult a list of the best French casino sites to realize that they all offer electronic processors among the safest and most reliable. Well aware of the fact that bettors are obsessed with the idea of ​​quickly recovering their winnings, these online casinos are not limited to this solution, however. Many are indeed those who are switching to cryptocurrencies, while remaining open to any innovation that could further secure and boost financial transactions.

NFC, a gateway for payment systems to a higher level

Near Field Communication is a technology that really took off in France in 2011 after several various experiments on mobiles in 2005. However, it was already fully exploited in countries like China around 2004. It allows an exchange very fast small data between two devices without pairing. With two terminals which must be very close (3 to 4 cm), the exchange is very simple since the terminals operate according to the principle of radio transmitters and therefore do not need any source of energy to operate being provided with micro-antennae. This function naturally facilitated all physical payments or, to make a settlement, various credit cards were inserted into traditional TPEs (Electronic Payment Terminals). Today, NFC allows mobiles to communicate with payment terminals and makes life easier for thousands of people. If your payment card or even your mobile phone is equipped with NFC technology, all you have to do is bring your NFC tag closer to the new “contactless TPEs” and you’re done! A milestone has clearly been crossed with this very practical technology which initiated the era of contactless payments, but the wheel of innovation will of course continue to move forward.

The iPhone transformed into a payment terminal with “Tap to pay”

Until then, to carry out an operation with NFC, the merchant or the store in which you are shopping must have a contactless terminal, the TPE, before the operation can be possible. This was a point that until now did not allow the full potential of NFC to be exploited in some countries, some merchants not having contactless TPEs or even classic TPEs for various reasons, including the additional charges . That’s where Apple steps in, with its new Tap to Pay feature to once again take technology to the next level.

Understanding Apple’s “Tap to Play” Feature

Apple’s Tap to Pay is a new function that transforms iPhones into contactless payment terminals using a dedicated application. With this feature, any iPhone holder with NFC technology will be able to receive contactless payment on their device from all other compatible devices (iPhone, bank cards, or even connected watches). Transactions will be done more quickly with Apple pay, because Apple’s electronic wallet, which also participated in the rejuvenation of the field of electronic wallets, plays a very important role today in the operation of Tap to Pay.

Appearing in the USA around 2014, Apple Pay quickly differentiated itself from other market players and built a reputation in the world of virtual banks. With Apple Pay, there is no need to enter personal data or login details; everything is played with Biometrics. With Touch ID or Face ID, a touch of your finger or face to face on your screen will be enough to unlock authorization for an NFC transaction or for access to your account. Apple guarantees the future compatibility of its electronic wallet with all Banks so that merchants can use it and accept all types of contactless payments from any bank on the iPhone, their new contactless payment terminals. For the time being, the use of Tap to Play is limited to American companies and merchants who have Apple pay (90%) or wish to integrate it into their method of payment. Shopify and Stripe are the only platforms offering Tap to Pay services to their professional customers, but the list will of course be expanded later this year according to the promoters.

Impact of “Tap to Pay” on the current NFC system in place

With the help of its Apple Pay Banking Wallet, Apple is making Tap to Pay a feature that will allow businesses to receive all types of contactless payments with ease. Here are some of the added values ​​it brings to its luggage:

  • Security : Apple said the new Tap to Pay feature runs on the same system that makes its Apple Pay secure: technology that processes and encrypts all transactions made from Apple Pay through the iPhone. Even if you happen to perform an operation on another device, the mandatory two-factor authentication of iOS 11 greatly reduces the risks.
  • Confidentiality : Transactions made by Apple pay or Tap to Pay users are strictly confidential. The developers of the technology themselves do not have access to this information; they don’t know who is buying what.
  • The commodity : With Tap to Pay and the dexterity of the iPhone, recording payments becomes very simple. At a checkout, for example, the customer will be asked to just bring their NFC-compatible device (iPhone, Apple Watch, credit or debit card, etc.) closer to the merchant’s iPhone and the payment will be made in full. security after the customer has validated the operation via their lock code, Face iD technology or Touch iD.

The arrival of Tap to Play also has the potential to reduce or even avoid extra expenses in more ways than one. This is valid both for merchants who already have an iPhone, but do not have a classic/contactless TPE, and for companies involved in the various specific charges for lines or outfits linked to the use of a TPE who wish to reduce their charges. Once installed like previous technologies, Tap to Pay will certainly bring a big boost to the fluidity and convenience of payment systems that have existed until now.

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