Starting this spring, U.S. iPhone users are expected to be able to pay for the product by simply putting their iPhone on the owner’s iPhone at the store. Apple introduces a new contactless payment function called “Tap to Pay” for iPhone.
Through this function, which Apple introduced using NFC technology, payment is automatically made when iPhones are brought together.
In the meantime, there had to be a separate NFC terminal to make NFC payments, but Tap-to-Pay, which Apple introduced, does not require additional hardware installation.
This function also works with contactless credit and check cards that utilize payment networks such as Visa, American Express, and MasterCard.
CNBC said that Apple’s new feature has changed the iPhone to a POS (Force) terminal.
Apple said it will first provide this function to customers this spring, starting with payment company Stripe and e-commerce company Shopify, while other payment companies and application (app) developers will be available later this year.
Apple said it does not have access to information on who purchased what, and explained that payment data will be encrypted and protected with the same technology used in Apple Pay.
The WSJ evaluated that Apple’s latest function could be to invade the business area of Block (formerly Square), which launched hardware that supports contactless payment payments.
Block shares fell about 2% during the day.
“Apple sees payment as an important independent business and is trying to use it,” said Shannon Cross, an analyst at stock analysis company Cross Research.
