Apple has recently announced a new feature for iPhones (series XS or later) that could make a lot of business owners happy. They will be introducing Tap to Pay on iPhone later this year. A new service that will allow a transfer of funds just by holding iPhones near each other. Amazing!
With no additional hardware required to accept credit transactions, businesses will have one less cost liability to manage, and they will be able to quickly adopt this new service into their existing payment processing platforms. Another benefit that might not have been an available option previously, is being able to use a single service provider for online and in-person sales. Cost-saving and one less account to remember a password for!
Right now, Apple is not offering an app of their own for this service but is allowing third-party payment providers to integrate the feature into their systems, but according to Apple’s press release,
“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.”
Stripe, the default payment processor for millions of small businesses, will be the first adopter of the new feature and is working with Apple on creating an app on the iOS platform. Considering Stripe processed about $350 billion in 2020, they will be a good, large-scale platform to look for bugs or glitches.
Similar to using Apple Pay where you hold your iPhone up to an enabled card reader, all a customer will need to do is hold their iPhone near the business’s iPhone and double-click the side button to pay. This also means that the transactions will be securely encrypted, and Apple won’t know what you’re buying.
While Tap to Pay on iPhone eliminates the need for a card reader or any type of separate payment terminal, it does require customers to have a digital payment method in their Wallet.
Payment processors that use a card reader, like Square, will likely change to integrate Tap to Pay on iPhone into the services they are already providing. How quickly consumers adapt to the new method remains to be seen.
Change is the only constant and Apple is again leading the way to a better way. We would have headlined this “Millennials Kill the Printed Check,” but that payment method has been on the decline for far too long. With encrypted, digital transactions your payments are safer than ever so maybe the plastic credit card is also now on the way out.
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