Apple is rolling out a new feature that will allow businesses to accept credit card and digital payments with just a tap of an iPhone, bypassing hardware systems like Block Inc’s Square terminal.

The feature, due to launch later this year, will use near-field communication (NFC) technology for a variety of payments, including payments between iPhones, Apple said on Tuesday. The tech giant added that it doesn’t know what or who is buying it, stressing the service’s privacy features.

Fintech services Stripe and Shopify Point will be the first to offer click-to-pay functionality to business customers in the U.S. in spring 2022, the company said in a statement.

“Whether you’re a salesperson at an internet-first retailer or a solo entrepreneur, you’ll soon be able to accept contactless payments on the device in your pocket,” said Billy Alvarado, Stripe’s chief commercial officer: your iPhone.”

Apple has been beefing up its fintech offerings. It launched its own credit card at Goldman Sachs in 2019 and is reportedly working on a “buy now, pay later” service.

“Apple sees payments as an important separate business for the company, and they’re looking to capitalize on it,” said Shannon Cross, an analyst at Cross Research.

“Their foray into contactless payments shows the importance of payments as a business for companies.”

Shares of Block were down 1.2% in early trade on Thursday, while shares of Apple were little changed.

Complete News Source : Money Control