Apple announced a new feature that will enable iPhone users to use crypto payments across different merchants, small businesses and large retailers in the US.
In addition to Apple Pay, contactless debit, credit and digital wallets will be among the types of payments available with Tap to Pay on Apple’s iPhone. Millions of US merchants, both big and small, will be able to accept all types of payments via Apple Pay, Apple Pay contactless and Apple Pay contactless.
Apple’s Tap to Pay:
This feature does not require additional hardware or payment terminals, according to the official press release. The company announced that Tap to Pay for iPhone would be compatible with contactless credit and debit cards from prominent payment networks, including American Express, Discover, Mastercard, and Visa.
Through Tap to Pay, customers can use their cryptocurrency holdings to make payments. It won’t facilitate a direct bitcoin transaction, however, Coinbase customers will still be able to use their holdings via the Coinbase Card, Crypto.com Visa Card, etc.
The company’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey, underscored the increasing trend of consumers using a digital wallet and credit card to pay.
Bailey asserted that Apple’s soon-to-be-launched contactless payment feature will enable businesses to accept contactless payments and try out new checkout experiences.
She added, “Our collaboration with payment platforms, app developers and payment networks is making it easier than ever for businesses of all sizes – from sole proprietors to large retailers – to seamlessly accept contactless payments and grow their business.”
The company said that Stripe, a privately-held financial services company, will be the first payment provider to offer Tap to Pay on the iPhone to its business users this year. Additional payment providers and apps will be added later this year.
A Threat to Jack Dorsey’s Block?
Payment processors such as Block (formerly Square) have become increasingly popular among merchants due to platforms such as theirs. Since the initial Bloomberg report on the product, many experts have discussed its implications for Block.
According to Barclays analyst Ramsey El-Assal, Apple’s inclusion of Tap to Pay will not have a significant impact on competitive dynamics. In fact, the analyst previously stated that the feature will be “added rather than competitive”.