Apple to allow payments with a tap on iPhones this year

• Businesses will be allowed to accept payments with just a tap on their iPhones

• The feature will be launched later this year

Apple Inc (NYSE: AAPL) is set to introduce a new feature allowing businesses to accept payments with just a tap on their iPhones, eliminating the need of hardware systems such as credit card machines.

The feature which will be launched later this year uses near field communications (NFC) technology for making payments, said Apple.

Addressing the security of users, Apple said it would not know the details of the payment including what is being purchased or who is buying it.

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“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. 

“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.”

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Apple said Stripe and Shopify Point will be the first to offer “Tap to Pay” feature in the United States later this year.

"Whether you're a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that's already in your pocket: your iPhone," said Billy Alvarado, Stripe's chief business officer.

Apple has been working on fintech services as it is an important business for the company. In 2019, it launched its own credit card with Goldman Sachs.

Picture Credits: Reuters