Apple announces "Tap to Pay" feature, for contactless payments on iPhones

Apple plans to roll out a new feature Tap to Pay to iPhones into a contactless payment terminal.

'Tap to Pay' feature via NFC

Contactless payments by using iPhone and a partner-enabled iOS app

The Cupertino giant said that business owners in the US will be able to accept Apple Pay, Google Play, and other contactless payments. It also works with contactless credit cards and debit cards from numerous payment networks, including American Express, Discover, Mastercard, and Visa.

Apple announces "Tap to Pay" feature, for contactless payments on iPhones

Once Tap to Pay on iPhone launches, merchants will be able to unlock contactless payment acceptance through a supporting iOS app. At checkout, the merchant will ask the customer to hold their iPhone or Apple Watch near the merchant's iPhone and the payment will then be securely completed using NFC technology.

Apple promises customers' data is secured through encryption

Apple explains that no additional hardware is required to perform contactless payments. The company also claims that customers' payment data is protected and that all transactions that are made through the feature are encrypted.

It was also noted in the news release that 90 percent of US retailers already accept Apple Pay. This implies that this new feature will allow customers to check out more seamlessly. VP of Apple Pay and Apple Wallet  Jennifer Bailey explained further in the release,

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.

Moreover, Apple said that it will work with payment platforms and app developers to offer Tap to Pay on iPhone to more merchants in the said country. Stripe will be the first payment platform to offer Tap to Pay on iPhone to customers through a new Shopify app. 

Apple says Tap to Pay on iPhone will be available to participating payment platforms and their app developer partners in an upcoming iOS software beta. However, note that it is going to work with Phone XS and newer models only.

Tap to Pay on iPhone will also roll out to Apple Store locations later this year. ‘Tap to Pay’ feature will be exclusively available in the United States and no announcement yet if they are planning to bring it to other countries.

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Source: Apple