Apple to Allow Contactless Payments on iPhones

Apple iPhones to Enable Direct Payments

It is anticipated that small businesses will shortly have the capability to process payments directly through their iPhones, eliminating the necessity for supplementary equipment. Reports from Bloomberg indicate that Apple is preparing to introduce this functionality via a software update within the coming months.

The rollout may coincide with the release of iOS 15.4, scheduled for this spring. Development of this service is said to have commenced in 2020, following Apple’s acquisition of Mobeewave, a Canadian firm specializing in technology that transforms smartphones into payment acceptance devices.

How the Technology Works

Mobeewave’s core technology relies solely on an application and the phone’s NFC capabilities. This contrasts with platforms like Square, which mandate the utilization of dedicated external hardware.

The process is streamlined: a merchant enters the transaction amount, and the customer simply taps their credit card against the back of the iPhone. Apple has not yet responded to inquiries from Bloomberg regarding the specifics of its implementation.

Integration with Apple Pay

The extent of integration with Apple Pay remains uncertain. Sources cited by Bloomberg were unable to confirm whether the new feature will operate as a component of the existing Apple Pay system.

However, the development team has reportedly been collaborating closely with Apple’s payments division since the Mobeewave acquisition. It is currently unclear if Apple will leverage an established payment network for this service.

Mobeewave’s Previous Partnerships

Prior to being acquired by Apple, Mobeewave established a partnership with Samsung to facilitate contactless payments via Samsung smartphones.

A pilot program was conducted in Canada, culminating in the broad availability of Samsung POS, the company’s point-of-sale solution, throughout the country.

Note: This report was originally published by Engadget.