Apple on Tuesday announced 'Tap to Pay' on newer iPhones that will let merchants use their iPhones to accept Apple Pay, contactless credit and debit cards, and other digital wallets with no additional hardware needed.
Tap to Pay on iPhone will be available for payment platforms and app developers to integrate into their iOS apps and offer as a payment option to their business customers in the US first, Apple said in a statement.
Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring and additional payment platforms and apps will follow later this year.
Available on iPhone XS and Later Devices
"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, vice president of Apple Pay and Apple Wallet.
The company says that more than 90 per cent of US retailers already accept Apple Pay.
Once Tap to Pay on iPhone becomes available, merchants will be able to unlock contactless payment acceptance through a supporting iOS app on an iPhone XS or later device, Apple said.
At checkout, the merchant will prompt the customer to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant's iPhone, and the payment will be securely completed using NFC technology, it added.
Privacy Fundamental in Design
Apple said that privacy is fundamental in the design and development across all of Apple’s payment features and Tap to Pay uses the same technology that makes Apple Pay private and secure.
"All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn't know what is being purchased or who is buying it," the company said.
"All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn’t know what is being purchased or who is buying it."Apple statement
Tap to Pay on iPhone will be available to participating payment platforms and their app developer partners to leverage in their software developer kits (SDKs) in an upcoming iOS software beta, Apple said.
“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.