Apple announces contactless payments via new iPhones

Apple has announced to introduce 'Tap to Pay' on newer iPhones that will help millions of merchants to use their devices to seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other digital wallets with no additional hardware or payment terminal needed.

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 their business customers in the US first, Apple said in a statement late on Tuesday.

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 and additional payment platforms and apps will follow later this year.

"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," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet.

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 simply 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, and the payment will be securely completed using NFC technology, said the company.

Apple Pay is already accepted at more than 90 per cent of US retailers.

Tap to Pay on iPhone will also roll out to Apple Store locations in the US later this year.

Apple said that 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," the company said.

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.

Apple said it 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.