Stripe clients will be able to use an iPhone as a payment terminal when the service goes live in the US this spring.
Apple has announced a new Tap to Pay feature enabling businesses to accept contactless payments using an iPhone and a partner-enabled iOS app.
The iPhone in effect becomes a payment terminal with no additional hardware required.
Tap to Pay will be rolled out to US merchants later this year. They will be able to accept payments via contactless cards and digital wallet services such as Apple Pay.
Payment platforms and app developers will be able to offer Tap to Pay as an option by integrating it into their own iOS apps.
Irish-founded fintech Stripe has been announced as the first platform to introduce Tap to Pay. Currently available through the Stripe Terminal SDK as part of a closed beta programme, the feature will be available for all Stripe’s business customers this spring. Those interested in signing up are invited to register their interest.
Stripe Terminal is a programmable point-of-sale system. Among Stripe’s users is Shopify, an e-commerce platform which, as well as supporting online sales across millions of websites, has a point-of-sale app for in-store payments.
“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,” said Stripe’s chief business officer Billy Alvarado.
Apple revealed that Tap to Pay will be available on additional payments services and apps later this year. It will also become an available payment option at Apple Stores across the US.
Merchants will require an iPhone XS or later to avail of Tap to Pay, which uses NFC technology.
The customer’s payment data is protected by the same privacy and security features used by Apple Pay. All transactions are encrypted so Apple will not be able to store or access information on what is being bought or by whom. Payments will be processed using Secure Element, a chip within the iPhone that is built to ensure tamper resistance and secure processing.
“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,” said Jennifer Bailey, Apple’s vice-president of Apple Pay and Apple Wallet.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.