Apple has confirmed plans to introduce Tap to Pay on iPhone in the U.S., which will allow merchants to use an iPhone to securely accept Apple Pay contactless credit and debit cards, and other digital wallets through a tap to the smartphone.
The feature will not require any additional hardware or payment terminals. Tap to Pay on iPhone will be available for payment platforms and app developers to integrate into their iOS apps and offer as a payment option to business customers.
Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring. Additional payment platforms and apps will follow later this year.
“As more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security and convenience of iPhone,” says Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet. “In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes, from solopreneurs to large retailers, to seamlessly accept contactless payments and continue to grow their business.”
Once Tap to Pay on iPhone becomes available, merchants will be able to unlock contactless payment acceptance through a supporting iOS app on an iPhone XS or later device. At checkout, the merchant will prompt the customer to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant’s iPhone. The payment will be securely completed using NFC technology. Because no additional hardware is needed to accept contactless payments through Tap to Pay on iPhone, businesses will be able to accept payments from wherever they do business.
Apple Pay is already accepted at more than 90% of U.S. retailers, and with this new capability, the business partners, big or small, will be able to allow their customers to Tap to Pay on iPhone at checkout. Tap to Pay on iPhone will also roll out to Apple Store locations in the U.S. later this year.
With Tap to Pay on iPhone, customers’ payment data is protected by the same technology that makes Apple Pay private and secure. All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn’t know what is being purchased or who is buying it.
Apple will work closely with leading payment platforms and app developers across the payments and commerce industry to offer Tap to Pay on iPhone to millions of merchants in the U.S. Tap to Pay on iPhone will work with credit and debit cards from leading payment networks, including American Express, Discover, Mastercard, and Visa.
“Whether you’re a salesperson at an internet-first retailer or an individual entrepreneur, you can soon accept contactless payments on a device that’s already in your pocket: your iPhone,” adds Billy Alvarado, Stripe’s Chief Business Officer. “With Tap to Pay on iPhone, millions of businesses using Stripe can enhance their in-person commerce experience by offering their customers a fast and secure checkout.”
Tap to Pay on iPhone will be available to participating payment platforms and their app developer partners to leverage in their software developer kits (SDKs) in an upcoming iOS software beta.
There’s no word yet on Apple Tap to Pay in Canada. Stay tuned.