Here’s your first look at Tap to Pay on iPhone

The news: Before being officially released to customers, Apple is testing Tap to Pay on iPhone in select Apple Stores, as first spotted by Twitter user Michael.

  • Tap to Pay on iPhone was first teased early this year with no official release date, but it looks like Apple is using it in some of its own stores early
  • According to Apple, the feature allows for payment using “contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone — no additional hardware or payment terminal needed”
  • Along with using credit and debit cards with an iPhone, the feature also allows for iPhone to iPhone transactions with no additional hardware
  • In a video shared by Michael, a customer is making a payment by taping their iPhone onto another…what we are seeing in the video is likely the unreleased Tap to Pay app (it features the same design as shown in the press release)

Ian’s Take: This is very cool to see Tap to Pay in person! While most didn’t bat an eye when it was announced, I think it will be a massive deal in the future. Any person with an iPhone, without any additional hardware, will be able to pay and be paid with just a tap: imagine the possibilities for small businesses!

Apple announces game-changing iPhone payments feature

The news: Later this year, your iPhone will be able to accept credit cards and transform into a mobile payment terminal…with no additional hardware.

  • Apple has announced Tap to Pay on iPhone, which works with Apple Pay, contactless credit cards and “other digital wallets” to natively accept payments on-device
  • Powering the experience initially will be payment processors Stripe or Shopify Point of Sale
  • Tap to Pay on iPhone will be available on iPhone XS or later

Our take: Great scoop from Mark Gurman on this a few weeks ago. As I said before, this is game-changing. Anyone with a recent iPhone will now be able to, overnight, accept payments from essentially anyone privately and securely. I love the future present.

Your iPhone will soon be able to accept credit cards and work as payment terminal

The rumor: Apple is preparing to ship a new feature that will turn your iPhone into a payment terminal, according to Mark Gurman (87% accurate, via Bloomberg).

  • When the new feature ships later this year, you’ll be able to use the NFC functionality on your iPhone to accept payments from NFC-enabled credit cards…essentially replacing traditional point-of-sale (POS) or payment terminals (pictured above)
  • The new feature could be included in iOS 15.4, which is expected to launch in beta soon

Our take: This is…kind of an insanely big deal? I’m surprised I haven’t seen more folks lose their minds over the fact that, within a few months, someone will be able to tap their credit card on the back of your phone and pay you for something…with no additional hardware. I’m calling it now: when this ships, it will be incredibly detrimental for the likes of Square and Shopify.

Apple developing ‘Apple Pay Later’ service to pay for products over time…without Apple Card

The rumor: Apple is working on a new service called “Apple Pay Later” that allows you to pay for nay Apple Pay purchase over time, according to Mark Gurman (89.1% accurate, via Bloomberg).

  • “The service is currently planned to work as follows: When a user makes a purchase via Apple Pay on their Apple device, they will have the option to pay for it either across four interest-free payments made every two weeks, or across several months with interest, one of the people said. The plan with four payments is called ‘Apple Pay in 4’ internally, while the longer-term payment plans are dubbed ‘Apple Pay Monthly Installments.'”
  • The interest rates for payments across several months aren’t currently known
  • No release date has been set for the upcoming feature just yet

Our take: This is a pretty big move…the ability to pay later for any purchase made with Apple Pay. Even more surprising is that this is separate from Apple Card, and will be more broadly available to Apple Pay users. With no interest for two months on most purchases, there’s almost no reason not to pay for your stuff over time.