Apple, Mobile, iOS, iPhone, Payment, mobile payments,

Is Apple planning to surprise Apple Pay when Tap to Pay hits beta?

Apple played another role as it continued to become more business-friendly, introducing APIs in its latest beta to support the “Tap To Pay” feature that turns iPhones (XR/XS or later) into payment card readers.

Click Now to Pay on iPhone in Beta Testing

After weeks of speculation, the company confirmed its plan to allow businesses to use its iPhones to accept payments in early February. The idea behind this is that merchants can use their iPhone to accept payments from Apple Pay, contactless credit and contactless debit card transactions, and payments from other digital wallets. The phone itself becomes the card reader, no third party hardware is required – just a supportive payment app.

Like Apple Business Essentials, this system is likely to be of real use to small and medium businesses (SMBs), as well as to large organizations.

When Tap to Pay was announced, Jennifer Bailey, vice president of Apple Pay and Apple Wallet, said: “As more and more consumers push to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private way. and easy to accept contactless payments and unlock new payment experiences with the power, security and convenience of iPhone.”

In use, your company may choose to use iPhones as payment terminals to accept digital payments. In addition to supporting regular credit and debit cards, this feature is also compatible with store cards and reward tickets.

Click to Pay is expected to be available in the US this spring.

Payment providers work with API

The Tap-to-Pay API is enabled in iOS 15.4 so payment platforms and app developers can build support to offer payment as an option for business customers. It may also be worth noting that a new feature Spotted in iOS 15.5 Beta 2 It also allows users to pay money from iPhone to iPhone in one click.

Stripe and Adyen have already confirmed plans to support Tap to Pay on iPhone and have begun API testing with this goal in mind. Adyen is working to support the feature across its enterprise customers and commerce platforms, such as Lightspeed Commerce and NewStore.

“Adyen has been at the forefront of innovation with NewStore since our inception. Together, we have already put iPhones in the hands of thousands of store partners. Now, these devices can become payment terminals without additional hardware,” NewStore founder and CEO Stephan Schambach said in a statement. “.

Launch looms

Tap to Pay is expected to launch in real this spring (Both Stripe and Adyen say they will enable the services at that time) and I imagine other payment providers already working with Apple Pay will also introduce support for it over time. Businesses using Tap to Pay must register with the Apple Business Register.

Apple is doing a lot of work to support and expand Apple Pay services and systems, including introducing stable on-device support for government ID.

Of course, once the iPhone becomes your passport and driver’s license, it also becomes a point of trust for additional payment and identity services.

When it comes to payments, the company is currently replacing Apple Account Cards with something called an Account Pass, which can be preloaded with cash to purchase Apple items online and at retail. The company has also reached a new deal under which Apple Cash will now use the Visa payments network, sparking speculation that it may expand that service – and possibly also Apple Card – outside the US.

The significance of its latest move to acquire an innovative credit registry company, Credit Kudos, has not yet emerged, but it’s worth noting that Tap to Pay on iPhone appears to take advantage of technologies Apple acquired when it purchased Mobeewave.

Why do I think Apple is putting a plan together

The level of activity suggests the company may have additional intentions, possibly extending to offering additional payment services, such as Apple’s “buy now, pay later” schemes that current speculation is it is considering.

Interestingly enough, activity around this aspect of Apple’s business appears to have intensified in just over three years since Apple launched the Apple Card. It is clear that Cupertino sees a huge opportunity as the entire payments sector is transforming into a digital and frictionless opportunity where taking and/or making payments becomes as easy and as usual as switching a faucet.

While this transformation represents an opportunity in advanced economies, this kind of simplicity and access to emerging economies should translate into economic opportunity for the unbanked of the world. “I think creating products and services that address the low-income segment without very high fees or high minimums is important,” Jennifer Bailey, Apple’s vice president of Internet services, said in 2019.

Jim Miller of JD Power told me in 2019: “Banks have the advantage of trust and existing customer relationships, but as we’ve seen, if they don’t innovate, competitors can move on easily, especially if they aren’t protected by regulations.”

Apple seems to be thinking the same thing.

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