Apple launches ‘Tap to Pay on iPhone’, letting people take payments on their device

Update gets rid of need for additional devices for payments – and will come to Apple Stores

(Apple)

Apple has announced “Tap to Pay on iPhone”, a new update that turns its device into a payment system.

Until now, most small businesses have used separate devices such as those made by Zettle, which pair with a phone and allow them to take payments on cards or phones. Now the new feature does away with the need for such additional hardware, turning the iPhone into a card reader itself.

The new update is focused on small and medium businesses, Apple said, though it will also be coming to the Apple Store soon. And while the update is for those businesses that take payments, it could mean that paying for things could look very different for customers, too.

It means that shops need only install a compatible app – such as those made by Stripe and Zettle – alongside an updated iPhone. That iPhone will then turn into a card reader, being able to accept not just iPhones and Apple Watches with Apple Pay, but also other digital wallets and traditional plastic payment cards.

All that is needed to use the new tool is an iPhone XS or later, that is running the latest software update. The tool will not work on other Apple hardware, such as iPads.

Apple has included a range of privacy and security features into the system. Transactions are encrypted and processed using the iPhone’s Secure Element, meaning that Apple is not able to track who has purchased something or what they have bought.

The system also uses a standardised payment screen, which means that users will be able to check they are being charged the right fee and that it is a legitimate transaction.

Apple first unveiled Tap to Pay on iPhone in the US, early last year. There, Apple Pay and other contactless systems have less widespread adoption, though the system worked in much the same way.

“We’ve seen Tap to Pay on iPhone transform the checkout experience for so many different types of businesses, and we’re thrilled to now support merchants across the U.K. by offering an easy, secure, and private way to accept contactless payments using the power, security, and convenience of iPhone, with no additional hardware needed,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet.

“Small and medium-sized businesses have long played a vital role in the U.K. economy, and alongside payment platforms, app developers, and payment networks, we’re making it easier than ever for U.K. businesses to seamlessly accept contactless payments and continue to grow their business.”