Rumor mill: We see many businesses using a Square terminal to accept payments made using iPhones, but it seems Apple also wants a piece of that pie. Rumor says Apple will turn iPhones into credit card payment terminals without needing extra hardware or third-party devices.
Apple Pay already allows you to pay for goods at any store with a third-party terminal supporting the method. This technology helped make the process of paying much simpler and more secure, as you don't have to use cash or a credit/debit card. However, small businesses had to pay for new equipment to support the payment option.
Now, Apple is reportedly working on a new technology that could reduce costs for small businesses, as they wouldn't need any extra hardware. Instead of using payment terminals like Block Inc.'s Square, the current market leader, employees would use iPhones.
Whether the new technology would belong to the Apple Pay feature set or not it's still unknown. Another thing we wonder is if Apple will be using a payment network such as VISA or create its own.
The ability to use credit card payment terminals doesn't come as a complete surprise. In 2020, Apple acquired the Canadian startup Mobeewave, a company known for developing a technology capable of accepting payments from credit cards by tapping them against the back of a phone. Since it was acquired, Mobeewave's team has worked for Apple's payment department, further developing its technology.
The new feature should be implemented later this year on the first beta version of iOS 15.4. By this spring, businesses may use iPhones to receive money directly.
Masthead credit: CardMapr