Apple Contactless NFC Payments

Apple on Tuesday announced its plans to introduce a new “Tap to Pay” feature on iPhone, which will enable businesses to seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone.

With this new capability, Apple aims to empower millions of merchants across the U.S., from small businesses to large retailers.

Tap to Pay on iPhone will be available for payment platforms and app developers so that they can integrate into their iOS apps and offer as a payment option to their business customers.

Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring. More payment platforms and apps are expected to follow later this year.

“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,” said Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet.

“In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”

Once Tap to Pay on iPhone becomes available, merchants will be able to unlock contactless payment acceptance through a supporting iOS app on an iPhone XS or later device.

To use this feature, the merchant will simply prompt the customer to hold their iPhone or Apple Watch to pay with Apple Pay. Customers can also use their contactless credit or debit card, or other digital wallets near the merchant’s iPhone, and the payment will be securely completed using NFC technology.

Tap to Pay on iPhone does not require additional hardware to accept contactless payments. This allows businesses to accept payments from wherever they do business.

According to the Cupertino giant, Apple Pay is already accepted by more than 90 percent of retailers in the U.S. This new capability will allow virtually every business, big or small, to use the feature at the time of checkout.

On the privacy front, all transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, the company does not know what is being purchased or who is buying it.

Apple will be working closely with leading payment platforms and app developers across the payments and commerce industry to offer Tap to Pay on iPhone to millions of merchants in the U.S.

Tap to Pay on iPhone will work with contactless credit and debit cards from leading payment networks, including American Express, Discover, Mastercard, and Visa.

“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that’s already in your pocket: your iPhone,” said Billy Alvarado, Stripe’s Chief Business Officer.

“With Tap to Pay on iPhone, millions of businesses using Stripe can enhance their in-person commerce experience by offering their customers a fast and secure checkout.”

Tap to Pay on iPhone will be available to participating payment platforms and their app developer partners to leverage in their software developer kits (SDKs) in an upcoming iOS software beta. The feature will also roll out to Apple Store locations in the U.S. later this year.