The new feature, which is slated to be rolled out later this year, will utilise near field communications (NFC) technology.
It will allow merchants to accept payments contactless credit and debit cards, and digital wallets through a tap to their iPhone, according to the company.
Apple vice president of Apple Pay and Apple Wallet Jennifer Bailey: “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.”
Apple will offer Tap to Pay to payment platforms and app developers to integrate into their iOS apps and offer as a payment option to customers.
The feature, which will be enabled for the iPhone XS and later models, will offer the same privacy to protect customers’ payment data as provided by Apple Pay.
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Stripe will be the first to introduce Tap to Pay feature for its customers with additional payment platforms and apps expected to follow later this year.
Bailey further said: “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.”
Last year, a report by Bloomberg said that Apple is working with investment bank Goldman Sachs to venture into the buy now, pay later segment with a new offering called Apple Pay Later.