Soon iPhones will handle contactless payments without additional hardware

Apple today announced a limited new feature for iOS. With iPhone Touch Checkout, merchants and vendors will be able to accept contactless payments from customers at the point of sale using only the iPhone app. No additional equipment is required.

At least for now, Tap to Pay will only work with apps from Apple’s participating partners. Right now, that means Stripe, the giant in the mobile point of sale industry. According to Apple, new partners will appear later.

Previously, Stripe offered both the app and related hardware to its customers. It is currently accepting registration for the Tap to Pay closed beta program on iPhone.

Touch to iPhone will work on iPhone XS and later, which means iPhone X, iPhone 8, and iPhone 7 are not supported, for example. Apple hasn’t said anything about the iPad either, although the iPad is also a very popular point-of-sale device.

Apple’s press release describes the feature in terms of how it will work for both vendors and customers:

At checkout, the seller simply prompts the buyer to place their iPhone or Apple Watch to pay using Apple Pay, a contactless credit or debit card, or other digital wallet near the seller’s iPhone, and the payment is completed securely using NFC technology. No additional hardware is required to accept contactless payments with Tap to Pay on iPhone, so businesses can accept payments from anywhere in the world.

The press release goes on to explain that Tap to Pay on iPhone takes the same approach to security and privacy as Apple Pay, meaning that (among other things) Apple does not know what is being bought nor does it know the identity of the buyer. or.

Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said:

As more and more consumers use digital wallets and credit cards to pay, Tap to Pay on iPhone will provide businesses with a secure, private and easy way to accept contactless payments, and open up new ways to pay with power, security and convenience. iPhone. By partnering with payment platforms, app developers and payment networks, we are making it easy for businesses of all sizes, from sole proprietors to large retailers, to accept contactless payments and continue to grow their business.

There are some key prerequisites to keep in mind here, namely that Apple acquired Mobeewave, a startup that was working on contactless payment technology via wireless smartphone technology, in 2020. This acquisition likely played a role in bringing Tap to Pay to the iPhone.

Tap to Pay support on iPhone for app developers will arrive in an unnamed upcoming iOS beta. Apple says the feature will roll out to end users in the United States later this year, but some Stripe web content suggests a more specific time: sometime this spring.