Apple announced that iPhones would be able to initiate a contactless payment terminal later in 2022. However, rumours were slightly different, but almost everyone suspected Apple of launching something for contactless payments. Finally, this is happening. Experts assumed that Apple might enable contactless payment portals through NFC chips on iPhones.
But, iPhones are turning into contactless payment gateways without any additional hardware. Apple made the final announcement in a newsroom post where it confirmed that US merchants could enable the feature by the end of 2022. Undoubtedly, this will benefit countless large retailers or small businesses to accept payments via Apple Pay.
Will the feature be available for all iPhones existing in the market? How can anyone make use of the contactless payment feature?
Let’s find out everything about Apple’s next big move towards Tap to Pay or a contactless payment terminal.
iPhones that Can Participate in Tap to Pay
Apple has announced that a vast majority of iPhones can make use of the contactless payment feature. The feature will be launched for the iPhone XS and all the later innovations in the iPhone series. This means that the iPhone 7 and Phone X models aren’t supported by this feature. Well, this is not the first time when an iPhone will be able to transact without contact.
Earlier, point-of-sales applications have offered technologies to trigger contactless payments through iPhones. Stripe is a technology that uses additional hardware that lets you connect your iPhone wirelessly. Or, you could connect your iPhone to the hardware through the lightning or headphone port on your device.
However, this time the contactless payment terminal will be something different. Your iPhones will not require any extra hardware to operate the contactless payment. Instead, developers must find ways to build apps compatible with both iPhones and contactless payment methods.
What are Compatible Applications to Trigger Contactless Payments on iPhones?
Apple has confirmed that iPhones will not readily start accepting contactless payments. First, Apple will launch a software update for all the iPhones eligible for the feature. Next, iPhone users have to install a third-party application to use pay without any contact.
Apple has released a beta version of the required software update for contactless payments. The second developer beta version of the iOS 15.4 update is already available for developers. This will facilitate the developers to integrate their applications to work with Apple’s contactless payment feature.
However, Apple has named this feature ‘Tap to Play’ for iPhones. Developers can now integrate apps to accommodate Apple’s Tap to Pay for iPhone SDK. Stripe is the first third-party application that supports Apple’s Tap-to-Pay technology for iPhone.
Is Stripe out in the market? Can iPhone users install Stripe now for contactless transactions? Stripe will probably accept the payment platform in the spring of 2022. After the competent app release, Stripe will mostly accept payments through the Shopify Point of Sale app. We expect more businesses and applications to join shortly to work with Apple’s Tap to Pay for iPhones.
What’s More About Apple’s Tap to Pay?
Apple announced the Tap to Pay feature in February 2022. This feature will enable iPhones or other mobile devices to act as a contactless payment terminal. Apple acquired the startup Mobeewave, which began contactless payment technology.
Businesses used to accept contactless payments via Phones, but with extra hardware, such as the Square Reader dongle.
The working mechanism of Tap to Pay is quite simple. For now, the functionality will only be available for merchants and businesses in the US. The merchant’s iPhone will accept contactless payment using the Tap to Pay feature. The business might prompt you to hold your iPhone, credit, or debit card eligible for contactless payment at checkout.
The payment will securely be processed using NFC technology. Apart from Stripe, the Dutch payment processing company Adyen joined Apple’s Tap to Pay functionality. Adyen will cooperate with commerce platforms and enterprise customers for a superior experience.
Also, Adyen has confirmed that it will work with Newstore and Lightspeed Commerce. Reportedly, Apple Store will also roll out applications supporting this feature in 2022.
Additionally…
You might be sceptical about your privacy as a customer. Well, Apple always respects your privacy and takes extra steps to stay ahead in securing your data. Apple’s Tap to Pay is all about privacy at its core. The customer’s payment data is secure with Apple’s iPhone Tap to Pay feature.
Apple has utilised the same technology as Apple Pay, and each transaction remains secure with encryption. Additionally, Apple processes the payment with Secure Element. This interprets that Apple won’t know whatever you are purchasing and who is the buyer.
In addition, Apple will work closely with all the leading payment processors and application developers. This will ensure that millions of merchants in the US can benefit from Apple’s Tap to Pay without caring about supported platforms. Undoubtedly, Tap to Pay will be a revolutionary break in the industry of payments and commercial industries.
Tap on Pay will be working with prominent payment networks. American Express, Visa, Mastercard, and Discover are a few mentions of complying with Tap to Pay. Consequently, customers can retain peace of mind with such a versatile and secure payment procedure.
Future of Apple’s Tap to Pay Feature
We don’t think that Apple’s Tap to Pay will be limited to the Point of Sales applications. Additionally, Apple has clearly stated that there are huge opportunities with the Tap to Pay feature.
Apple hasn’t limited the feature to iPhone users only. Users should be able to accept payments through Apple Pay, debit cards, and credit cards that come with contactless payment technologies.
On the other hand, chances are there that people can use Tap to Pay with other digital wallets. For example, users might proceed with contactless pay using Samsung Pay or Google Pay with the Tap to Pay feature.
However, Apple hasn’t said a word about launching the same feature on any other device. iPad, on the other hand, is a very famous Point of Sale device next to iPhones. Currently, Apple might not have any intention of launching contactless transactions on iPads.
Yet, we might expect that Apple would bring a bigger Point of Sales device after iPhones. Experts suspect that Apple might infuse NFC chips into iPads. Thus, iPads might turn into a larger terminal for Tap to Pay.
Square has already proven that an iPad will be highly efficient as a larger payment kiosk. However, there’s no confirmation about launching contactless payment gateways on iPads, yet.
Will Apple’s Tap to Pay be Active Outside the US?
To date, Apple hasn’t shared any update on which countries can benefit from the Tap to Pay feature. It simply means that other countries, except the USA, will have to wait unless Apple masterminds release anything else soon.
However, contactless payments through iPhones will get a new magnitude with Apple’s Tap to Pay. Moreover, businesses can grow rapidly in terms of secure payments.