iPhones to Become Payment Terminals with Software Update
(27 January 2022 - Global) Apple is working on an update that will transform its iPhone into a payment terminal, enabling users to accept payments with the tap of a card.
Bloomberg says the company has been working on the new feature since around 2020, when it paid $100 million for Canadian startup Mobeewave.
The feature is likely to provide a setback to Square and the new breed of SoftPOS vendors, by providing the tap-and-pay functionality as an integrated part of the device, with no need for third party help.
Apple may begin rolling out the feature via a software update in the coming months, say Bloomberg sources. The company is expected to release the first beta version of iOS 15.4 in the near future, which is likely to see a final release for consumers as early as spring.
“If Apple lets any app use the new technology, then Square can continue accepting payments via Apple devices without needing to worry about providing its own hardware. If Apple requires merchants to use Apple Pay or its own payment processing system, that could compete directly with Square” commented Bloomberg Technology Reporter, Mark Gurman.
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