The latest Tap-to-Pay feature by Apple will allow users to turn their iPhone handsets into money transfer terminals

Later this year, Apple will release its Tap to Pay technology for iOS, which will enable companies to use mobile devices as contactless payment systems. Apple Pay is approved by far more than 90% of United States businesses, according to the company, and this latest release will enable users to pay much more efficiently.

Stripe, a financial services company based in San Francisco, will be the first to provide Tap to Pay, and it will be implemented into Shopify's point-of-sale software shortly. Additional networks & applications are expected to get it shortly after according to Apple.

According to the firm, the option which will first be accessible in the United States will allow vendors to take payments via Apple Pay, credit cards, or e-wallets without the need for additional hardware.

Stronger assistance, technical improvements in digital systems and mobile devices, and the impact of the Coronavirus outbreak have substantially impacted consumers' shopping habits and are all promoting contactless payment.

Tap to Pay will be available on the iPhone XS and the following versions, as well as the Apple Watch. Near-field communication technology will be used to "securely complete" purchases.

Users' payment information on Tap to Pay, like that of Apple's various financial operations, is secured, as all payments are encrypted, according to Apple. Apple will not learn what's being bought and who's purchasing it with Apple Pay.

The above finance qualities are included in Apple's services portfolio, which generated $19.5 billion in sales during the first quarter of fiscal 2022, up nearly a quarter annualized.

Apple has been trying to develop this new feature since 2020 when it spent around $100 million on a Canadian company named Mobeewave, which successfully developed technology for iPhones to accept credit card payments with just a click.

It is unclear when this innovative technology will be accessible outside the United States.

As per estimates provided by Research and Markets show, the worldwide contactless payment market is estimated to reach more than $12.6 trillion until 2030, expanding at a rate of 24.2 % a year from 2020-2030.

According to a January research by Visa, over 60% of small companies worldwide are currently or plan to go contactless with payment by 2024, with 75 % admitting that taking new payment options is essential for company success.

Apple might not be the sole brand working with contactless payments. Both Samsung and Google have transaction applications that allow users to purchase with a tap of their phone. Similarly, Amazon has created a couple of Amazon Go stores in which clients may shop without ever having to deal with a cashier.

Read next: Apple is now everyone's office dream, and here’s why
Previous Post Next Post