Apple updates iPhones so users can send money directly from one device to another

Apple says all payments are encrypted so it does not know who is paying or what they are buying

(Apple)

Apple has announced its plans to let people pay businesses via money transfer from one iPhone to another.

The feature, “Tap to Pay on iPhone”, will let companies accept Apple Pay, contactless credit cards, debit cards, and digital wallets through their device. No additional hardware or payment terminal will be required.

A companion app on any iPhone XS or later device will be available for merchants, and customers will be able to pay through an iPhone or Apple Watch using NFC technology.

Apple says that all transactions made using this method are encrypted, so the company does not know what is being purchased or who is purchasing it.

Tap to Pay on iPhone will work with contactless credit and debit cards from payment networks including American Express, Discover, Mastercard, and Visa.

“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap to Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet.

“In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”

News of this feature was leaked earlier last month, after Apple purchased a Canadian startup Mobeewave that was building ways for smartphones to accept credit card payments without contact.

In 2019, Apple launched the Apple Card which activates a virtual payment system allowing users to pay with their device.

It touted two per cent cash back on purchases with the ApplePay service, no fees, an app to manage related finances, and a focus on data privacy.

Tap to Pay on iPhone will only available in the US, but is likely to roll out globally over time.