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Apple is launching a new feature that would enable companies to collect credit card and digital payments with a single tap on their iPhones, avoiding hardware devices like as Block's Square terminals.
Apple said on Tuesday that the feature, which will be available later this year, will employ near field communications (NFC) technology to make all types of payments, including those between iPhones. The tech behemoth also stated that it would not know what was purchased or who was purchasing it, emphasising the service's privacy feature.
Financial technology services Stripe and Shopify Point will be the first to provide the "Tap to Pay" option to business clients in the United States in the spring of 2022, according to the firm.
"Whether you're a salesperson in an internet-first shop or a solo entrepreneur, you'll soon be able to take contactless payments on a device that's already in your pocket: your iPhone," said Stripe's chief business officer, Billy Alvarado.
Apple has been expanding its financial offerings. In 2019, it partnered with Goldman Sachs to establish its own credit card, and it is apparently working on a "buy now, pay later" programme.
"Apple sees payments as a key separate business for the firm and is attempting to exploit it," said Cross Research analyst Shannon Cross.
"Their foray into contactless payments demonstrates how crucial payments are to the corporation as a business."
Block shares dipped 1.2 percent in early trade on Thursday, while Apple shares were barely changed.
