News

iPhones May Soon Accept Card Payments, Making Cash Obsolete

Shopping for food truck tacos with your phone?priceless

main learning point

  • Rumor has it that the iPhone will soon accept contactless payments with credit cards.
  • iPhone also accepts iPhone-to-iPhone direct payments.
  • In 2020, Apple acquired mobile payments company Mobeewave.

Clay Bank / Unsplash

Apple is about to revolutionize the world of smartphone payments. how? Instant iPhone-to-iPhone payments using the same NFC chip as Apple Pay.

According to Bloomberg’s Apple Whisperer Mark Gurman, these instant payments will also allow people to accept contactless payments by tapping or waving a regular credit card near their iPhone. Imagine buying in the market and being able to pay with a card. In theory, anyone with an iPhone could accept credit card payments, from food trucks to homeless magazine vendors. But unlike Apple Pay, which is now nearly ubiquitous, this new scheme already has some competition.

“Apple Pay isn’t the only game in town,” Japanese lawyer Matthew Carter told Lifewire via email. “In Japan, there is also an NFC option, but apps like PayPay that offer scannable codes are also popular.”

The next Apple payment

Apple Pay revolutionized phone payments. It wasn’t the first phone payment option, but it was the first to go completely mainstream. It’s also more secure and personal than using your real card, thanks to biometric authentication and keeping your real card number private. Even if your iPhone is stolen, thieves still need your phone passcode to pay.

Now, Apple can provide the same ease of use for receiving payments. There are no details about the unannounced service, but you can imagine it will work with Apple Cash. Currently only available in the US, Apple Cash allows people to pay each other directly using the Messages app. It’s not hard to assume that card payments can be transferred directly to your Apple Cash balance, for additional payments, or to a bank account.

Then there’s Mobeewave, the payments company Apple acquired in 2020, which allows shoppers to pay by swiping a card on a smartphone’s NFC chip. As part of the acquisition, Apple hired the entire Mobeewave team, and it does sound like it plans to add such a feature to the iPhone.

Square Killer?

One of the most popular ways for individuals and small businesses to accept credit cards is with Square, which offers card readers as part of its service. Apple’s payment system won’t necessarily compete with it.

The Block’s Square section offers software to keep virtual check-ins, track everything from menu items to prices and inventory, calculate sales tax and tips, and issue receipts, as well as a variety of services like banking, payroll, loans, and invoicing. Sergey Nikonenko, chief operating officer of mobile development firm Purrweb, told Lifewire via email that micro-vendors account for only a third of Block’s total payments volume.

White Square NFC Reader

square

It doesn’t sound like a typical Apple model. Most likely this will be a simple quote for small businesses and individuals. In fact, Apple’s presence in this market could even help a company like Square.

“Services can benefit [Square’s parent company] Other payment providers like Block and PayPal make it easier for small retailers to accept payments without the need for separate hardware,” Nikonenko said.

This assumes that Apple will provide a way for other carriers to receive payments using the iPhone’s NFC chip, which is far from obvious. We already know that Apple likes to take a cut of any payment associated with the App Store, so Square and PayPal may prefer to keep their dongles to avoid taxing Apple again. But this obviously requires more work from the user to set it up.

“Apple Pay isn’t the only game in town.”

If Apple made its Mobeewave-based service available to everyone and made setup as easy as setting up Apple Pay, it would greatly reduce the barriers to accepting card payments. This could shake up the entire industry.

Yet this happened at launch, and the big short-term winners were you and me, who didn’t have enough cash to buy a pizza on the street. Contactless payments using mobile phones, cards or watches are already very common in places like the UK and Sweden. Forgoing cash altogether is a bit of a jump from there, at least in general day-to-day use. This can be a big problem.

Content

iPhones May Soon Accept Card Payments, Making Cash Obsolete

Buying a food truck taco with your phone? Priceless

Key Takeaways
The rumors say the iPhone will soon accept contactless payments from credit cards.
The iPhone may also accept direct iPhone-to-iPhone payments.
In 2020, Apple purchased mobile-payment startup Mobeewave.
Clay Banks / Unsplash

Apple is about to shake up the world of smartphone payments. How? With direct iPhone-to-iPhone payments using the same NFC chips that enable Apple Pay. 

According to Bloomberg’s Apple-whisperer Mark Gurman, these direct payments will also allow people to take contactless payments from regular credit cards, too, just by tapping or waving them near an iPhone. Imagine shopping at a flea market and being able to pay by card. In theory, anyone with an iPhone might accept credit card payments, from food trucks to homeless magazine vendors. But unlike the now almost-universal Apple Pay, this new scheme already has some competition. 

“Apple Pay isn’t the only game in town,” Japan-based attorney Matthew Carter told Lifewire via email. “In Japan, there are NFC options, too, but apps like PayPay, which offer scannable codes, are also very popular.”

The Next Apple Pay

Apple Pay revolutionized phone payments. It wasn’t the first phone payment option, but it was the first to go fully mainstream. It’s also both safer and more private than using your actual card, thanks to biometrics authentication and keeping your actual card number secret. Even if your iPhone is stolen, the thief still needs your phone’s passcode to make a payment.

Now, Apple may bring the same ease of use to receiving payments. There are no details of this unannounced service, but one can imagine it would work with Apple Cash. Currently available only in the US, Apple Cash lets people make payments directly to each other using the Messages app. It’s not a stretch to assume the card payments could go straight to your Apple Cash balance, to be used for further payments, or transferred out to a bank account. 

Then there’s Apple’s purchase of payments startup Mobeewave in 2020, a service that lets buyers pay by tapping their cards onto the NFC chip of a smartphone. As part of the acquisition, Apple hired the whole Mobeewave team, which certainly makes it seem like it’s planning to add such a feature to iPhone.

Square Killer?

One of the most popular ways for individuals and small businesses to take credit cards is to use Square, which provides a card-reading dongle as part of the service. Apple’s payments system wouldn’t necessarily compete with this. 

“Block’s Square section supplies software to run a virtual register—keeping everything from menu items to prices to inventory, accounting for sales tax and gratuities, and issuing a receipt—as well as different services like banking, payroll, loans, and invoices. Micro-merchants account for only a third of Block’s gross payment volume,” Sergey Nikonenko, COO at mobile development company Purrweb, told Lifewire via email. 

Square

That doesn’t sound like a typical Apple model. More likely is it’s a simple offer for small businesses and individuals. And in fact, Apple’s presence in this market might even help the likes of Square. 

“The service might benefit [Square’s parent company] Block and other payment providers such as PayPal by allowing smaller retailers to accept payments more simply without the need for a separate piece of hardware,” says Nikonenko.

That assumes that Apple would provide a way for other vendors to use the iPhone’s NFC chip to receive payments, which is far from a given. We already know Apple loves to take a cut of any payments that are even tangentially related to its App Store, so perhaps Square and PayPal will prefer to keep their own dongles to avoid another possible Apple tax. But, of course, that requires a lot more work from a user to get set up. 

“Apple Pay isn’t the only game in town.”

If Apple makes its Mobeewave-based service available to anyone and makes setup as easy as setting up Apple Pay, it will significantly lower the barrier to accepting card payments. And that could really shake up the rest of the industry. 

However this shakes out on launch, the biggest short-term winners will be you and me, the people who didn’t bring enough cash to buy a slice of street pizza. Contactless payments with phones, cards, or watches are already huge in places like the U.K. and Sweden. It’s a small hop from there to eliminating cash altogether, at least in general everyday use. This could be a pretty big deal.

#iPhones #Accept #Card #Payments #Making #Cash #Obsolete

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *

Back to top button