Apple has played another role as it continues to become more relevant to businesses, introducing APIs in its latest beta to support the "Tap to Pay" feature that turns iPhones (XR/XS or later) into credit card readers. pay.
Tap to Pay on iPhone is now in beta testing
After weeks of speculation, the company confirmed plans to let businesses use their iPhones to accept payments in early February. The idea behind this is that merchants can use their iPhone to accept Apple Pay payments, contactless credit and debit card transactions, and payments from other digital wallets. The phone itself becomes the card reader, no third-party device required, just a supporting payment app.
Like Apple Business Essentials, this system is likely to be of great benefit to small and medium-sized businesses (SMBs) as well as large enterprises.
When Tap to Pay was announced, Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said, "As more consumers pay with digital wallets and credit cards, Tap to Pay on iPhone will give businesses a secure way to , private and easy way to accept contactless payments and unlock new payment experiences using the power, security and convenience of iPhone.
In use, your business may choose to use iPhones as payment terminals to accept digital payments. In addition to supporting regular credit and debit cards, the feature also supports store cards and rewards passes.
Tap to Pay is expected to be available in the US this spring.
Payment providers work with the API
The Tap-to-Pay API has been enabled in iOS 15.4 so payment platforms and app developers can integrate support for offering payment as an option to business customers. It should also be noted that a new feature spotted in iOS 15.5 Beta 2 also allows users to pay from iPhone to iPhone with one click.
Stripe and Adyen have already confirmed their intention to support Tap to Pay on iPhone and have started testing the API for this purpose. Adyen is working to support the feature with its enterprise clients and commerce platforms, such as Lightspeed Commerce and NewStore.
“Adyen has been at the forefront of innovation with NewStore since our inception. Together, we've already put iPhones in the hands of thousands of sellers. Now these devices can become payment terminals without additional hardware,” said Stephan Schambach, Founder and CEO of NewStore, in a statement.
launch is coming
Tap to Pay will launch for real this spring (Stripe and Adyen say they'll activate the services at that time), and I imagine other payment service providers that already work with Apple Pay will also introduce support over time. Businesses using Tap to Pay must also register with Apple Business Register.
Apple is working hard to consolidate and expand its Apple Pay services and systems, including regularly introducing on-device support for government ID.
Of course, once an iPhone becomes your passport and driver's license, it also becomes a point of trust for additional payments and identity services.
As for payments, the company is currently moving to replace Apple Account Cards with something called an Account Pass, which can be preloaded with cash to purchase Apple items online and at retail. The company has also struck a new deal under which Apple Cash now uses Visa's payment network, prompting speculation that it could expand that service, and possibly Apple Card, outside of the United States.
The significance of its recent decision to acquire innovative credit scoring company Credit Kudos has yet to surface, but it's worth noting that Tap to Pay on the iPhone appears to use technology acquired by Apple during its Mobeewave purchase.
Why I think Apple is preparing a plan
The level of activity suggests the company may have other intentions, which may extend to introducing additional payment services, such as the Apple-designed "Buy Now, Pay Later" programs that current speculation suggests it is considering.
Interestingly, activity around this side of Apple's business seems to be increasing in just over three years since Apple launched the Apple Card. Cupertino clearly sees a huge opportunity as the entire payments industry transforms into a frictionless place of digital opportunity where accepting and/or executing payments becomes as easy and routine as turning on a faucet.
While this transformation is an opportunity in advanced economies, for emerging economies this kind of simplicity and scope should translate into economic opportunity for the unbanked around the world. "I think it's important to create products and services that appeal to a low-income segment without super-high fees or high minimums," Jennifer Bailey, Apple's vice president of Internet Services, said in 2019.
JD Power's Jim Miller told me in 2019, "Banks have the advantage of trust and existing customer relationships, but as we've seen, if they don't innovate, competitors can easily get in, especially if they're not protected by regulation.
Apple seems to think the same.
Follow me on Twitter or join me at AppleHolic's bar & grill and Apple discussion groups on MeWe.
Copyright © 2022 IDG Communications, Inc.