Apple's New Tap to Pay Feature On iPhone Will Allow Contactless Payments

A new payment feature on iPhone coming later this year will enable contactless payments with just a simple tap.

According to Apple, this Tap to Pay feature will support small to large businesses, empowering millions of merchants across the country.

Being a new payment method without additional payment terminals and hardware needed, Tap to Pay is eyed to provide businesses an "easy way to accept contactless payments" wherever and whenever they want.

How Does It Work

Using an iPhone, merchants will be able to accept "Apple Pay, contactless credit and debit cards, and other digital wallets."

According to Apple and as explained by Techcrunch, app developers and payment platforms may integrate the Tap to Pay feature into their iOS apps, which business owners may then choose as their payment option for their businesses.

Apple said the iPhone Tap to Pay would work with leading payment networks such as American Express, Discover, Mastercard, and Visa.

Further, it will be available on an iPhone XS or later device and Apple Watch.

Apple further said in its post that Stripe is the first payment platform that will offer the Tap to Pay option to business customers this coming spring. More platforms are expected to follow later this year when the feature is finally rolled out.

Contactless Payment Process

To use the iPhone Tap to Pay feature as a payment method, business operators just need to ask the paying customers to hold their devices (for Apple Pay), credit or debit card, or digital wallets near the business operators' iPhone.

The payment will be completed through Near-Field Communication (NFC) technology.

According to Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, this is Apple's way of "making it easier for businesses of all sizes" to "accept contactless payments and continue to grow their business."

This feature is a product of Apple's collaboration with payment platforms, app developers, and payment networks.

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 US. Tap to Pay on iPhone complements and enhances the robust suite of payment and commerce tools that payment platforms and app developers provide to their merchant customers to help them run and grow their businesses. Tap to Pay on iPhone will work with contactless credit and debit cards from leading payment networks, including American Express, Discover, Mastercard, and Visa.

Meanwhile, Apple has also emphasized that privacy and security are well protected with this feature. As they said, privacy is fundamental across all Apple's payment features, adding that all transactions made through the Tap to Pay are "encrypted and processed using the Secure Element."

Just like in Apple Pay, it doesn't even know who is paying and what is being paid for.