Apple Inc. is diving deeper into the world of payment technology with plans to allow merchants to accept contactless payments using just their iPhones.
Apple’s Tap to Pay to Work With Other Payment Networks
According to the official press release on January 9, the feature does not require any additional hardware or payment terminals. The announcement shows that Tap to Pay on iPhone will work with contactless credit and debit cards from well-known payment networks such as American Express, Discover, Mastercard and Visa.
This essentially means that Tap to Pay customers can pay with their cryptocurrency holdings. While customers cannot transact directly with Bitcoin and other digital assets, they can leverage their assets through the Coinbase Card, Crypto.com Visa Card, and more.
Jennifer Bailey, the company’s vice president of Apple Pay and Apple Wallet, highlighted the increasing use of digital wallets and credit cards for consumer payments. Bailey claims the iPhone’s upcoming feature will offer businesses a “secure, private, and easy way” to accept contactless payments and explore new checkout experiences.
“In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”
Apple also announced that privately-held financial services company Stripe will be the first payment platform to offer its business customers Tap to Pay on iPhone, with other payment platforms and apps to follow later this year.
Apple’s Tap to Pay Might Be a Threat to Other Fintech Giant
Merchants accepting card payments are growing in popularity thanks to platforms like fintech giant Block (formerly Square). Since Bloomberg’s initial coverage of the product, many pundits have weighed its impact on Block.
Ramsey El-Assal, an analyst at Barclays, believes that Apple’s inclusion of Tap to Pay will not have a material impact on current competitive dynamics. In fact, analysts have previously commented that the feature will be additional, non-competitive.