Apple has announced the release of a new “Tap to Pay” feature for the iPhone, that will allow people to buy goods from merchants in the US by tapping their phones together. It is also compatible with contactless credit cards.
Basically, U.S. businesses will be able to accept Apple Pay and other contactless payments, including Google Pay, later this year by using an iPhone and a partner-enabled iOS app.
How Exactly does it Work?
Once Tap to Pay on iPhone is activated, merchants will be able to accept contactless payments via a supporting iOS app.
At checkout, the merchant will ask the customer to place their iPhone or Apple Watch near the merchant’s iPhone, and the payment will be completed securely using NFC technology. That is all.
Accepting contactless payments does not necessitate the purchase of any additional hardware and it is claimed that customers’ payment data is secure with Tap to Pay on iPhone and that all transactions made with the feature are encrypted.
Tap to Pay on iPhone isn’t yet available for use, but the supporting API was included in iOS 15.4 beta 2 today, potentially enabling the feature on iPhone XS and later models.
Also, Apple Pay is already accepted by more than 90% of U.S. retailers, and this new feature will allow customers to check out even more easily.
Tap to Pay on iPhone will also be available at Apple Store locations in the United States later this year. Apple intends to collaborate closely with payment platforms and app developers in order to expand the availability of Tap to Pay on iPhone to more merchants in the country.
What else?
Tap to Pay on the iPhone will accept contactless credit and debit cards from a variety of payment networks, including American Express, Discover, Mastercard, and Visa.
Stripe will be the first payment operator to offer the service, and it will be integrated into Shopify’s point-of-sale product, according to Apple.
This seems like a huge step towards making digital currencies such as bitcoin mainstream for any small or huge transaction. Many digital payment platforms are integrating crypto-based products and networks one such being Cash App when it announced that its users can send bitcoins for free through Lightning Network.
