Apple sees tremendous potential in turning the iPhone into a payment terminal. The concept of using a smartphone to accept payments isn’t new, although it usually involves extra hardware. An upcoming software update by the technology would enable support for tap-to-pay.
Doing More With The iPhone
There is only so much one can change and tweak about the design of Apple’s flagship phone every year. However, tinkering with the insides seems to yield some interesting use cases. For example, when every iPhone can become a payment terminal, the payment landscape will not be the same again. Moreover, there is no need for extra hardware or dongles, which is rather interesting.
The update is expected to roll out later this year. It has been in development since early 2020, indicating Apple has had big plans for payments with the iPhone for a while now. It may e the result of Apple acquiring Mobeewave for $100 million around that time, although the company has yet to comment on the news officially.
Interestingly, the iPhone has built-in hardware to support tap-and-pay functionality. That may not be surprising to make payments, but to receive payments is something else entirely. Be that as it may, this update will pose a setback for any software-based point-of-sale vendor bringing its solution to iPhone users worldwide. As a result, companies like Square and consorts may lose a significant market share.
Apple will send out a beta version of iOS 15.4 for the iPhone to users in Q1 2022. That beta will likely feature this new tap-and-pay functionality to gather feedback ad iron out any kinks that may linger. A final release is likely in Q2 2022, although it may be pushed back until early Q3.
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