IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Apple will let businesses accept payments on iPhones without the need for extra hardware

The feature is likely to arrive as a software update later this year and will remove the need for third-party payment terminals

Apple is reportedly planning a new service that will allow businesses to accept payments using an iPhone without the need for extra hardware.

The new feature has been in development since 2020, following Apple's acquisition of Canadian startup Mobeewave for around $100 million, according to a report from Bloomberg. Mobeewave previously developed technology for smartphones to accept payments with a tap of a credit card.

The system is likely to use the iPhone’s near field communications (NFC) chip that it currently uses for Apple Pay. This is seen as a boost for small businesses as currently to accept an order on an iPhone, merchants must use third-party payment terminals that plug into the device or communicate with it via Bluetooth.

The new feature, however, will effectively create a payment terminal inside the device and remove the need for additional hardware. Users will be able to accept payments with a tap of a credit card or another iPhone onto the back of their device.

This could be bad news for payment providers that use the iPhone to facilitate sales, like Block’s Square. If Apple requires merchants to use Apple Pay or its own payment processing system to use the technology, this would shut out other providers.

Related Resource

Establishing a strong foundation for DataOps

How to gain a competitive advantage with your available data

Whitepaper cover with titles, text and blue graphicsFree Download

For now, it’s unclear whether the new payment functionality will be part of Apple Pay, although Bloomberg has reported that the team building the feature have been working with Apple’s payment division since the Mobeewave acquisition.

Apple could potentially start introducing the feature in a software update in the coming months. It’s expected to release its first beta version of iOS 15.4 soon, with a potential final release for consumers in the spring.

IT Pro has contacted Apple and Square for comment.

The technology is yet another example of Apple's attempt to dig further into the small business space. The company recently launched a new package of support services designed to help SMB IT teams manage their employee devices in November last year. The package includes 24/7 phone support for IT managers and end-users, business iCloud storage, device management capabilities, and on-site repairs for businesses of 500 employees or fewer.

Featured Resources

Four strategies for building a hybrid workplace that works

All indications are that the future of work is hybrid, if it's not here already

Free webinar

The digital marketer’s guide to contextual insights and trends

How to use contextual intelligence to uncover new insights and inform strategies

Free Download

Ransomware and Microsoft 365 for business

What you need to know about reducing ransomware risk

Free Download

Building a modern strategy for analytics and machine learning success

Turning into business value

Free Download

Recommended

Apple "completely redesigns" IT certifications, introduces two new exams
Careers & training

Apple "completely redesigns" IT certifications, introduces two new exams

19 May 2022
Apple executive rejoins Google over remote work policy
flexible working

Apple executive rejoins Google over remote work policy

18 May 2022
The Total Economic Impact™ of Apple Mac in Enterprise: M1 update
Whitepaper

The Total Economic Impact™ of Apple Mac in Enterprise: M1 update

12 May 2022
Three lessons the iPod can teach us about disruption
Technology

Three lessons the iPod can teach us about disruption

11 May 2022

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Russian hackers declare war on 10 countries after failed Eurovision DDoS attack
hacking

Russian hackers declare war on 10 countries after failed Eurovision DDoS attack

16 May 2022
(ISC)2 launches free scheme to get 100,000 UK citizens into cyber security
Careers & training

(ISC)2 launches free scheme to get 100,000 UK citizens into cyber security

17 May 2022