As the battle for small business point-of-sale (POS) solutions heats up, Apple has expanded its platform that transforms iPhones into payment terminals.
The company’s Tap-to-Pay service has launched in eight additional countries: Belgium, Croatia, Cyprus, Denmark, Greece, Iceland, Luxembourg, and Malta. This solution enables merchants to accept contactless credit and debit card payments directly on their phones using NFC technology.
Tap-to-Pay will be compatible with a variety of payment platforms tailored to each country, including those offered by Adyen, Revolut, Mollie, and Stripe. Contactless transactions initiated by wearables and other devices will be supported, and customers can also pay using Apple Pay or other digital wallets.
Apple noted that all payment data will be encrypted and processed using its Secure Element technology. This technology plays a critical part in securing Apple Pay transactions, and Apple stated that, under this model, it has no knowledge of what is being purchased or who is making the purchase.
A Crowded Field
The recent boom in tap-to-pay technology (also known as tap-to-phone) has largely been made possible after Apple opened its NFC tech to third-party developers. As a result, the tech giant has become a serious competitor in the crowded small business POS market.
Many small business payment terminals now resemble smartphones—such as Clover’s Flex system and Square’s newly launched Handheld. However, these devices are just one component of a broader platform that often includes industry-specific features like waitlisting and inventory management. This indicates that these solutions are increasingly geared toward upmarket merchants with employees.
A Growing Middle Ground
Apple’s Tap-to-Pay platform primarily targets the audience once served by Square and its signature dongles. This includes merchants like local artists, gig workers, and sole proprietors who require a portable payments terminal.
While the need for additional accessories may be waning, demand for phone-based payment acceptance is expected to grow.
“Once the use cases manifest themselves, tap-to-phone will become increasingly popular,” Don Apgar, Director of Merchant Payments at Javelin Strategy & Research told PaymentsJournal. “There is a growing middle ground where individuals need some business capabilities on their personal account.”
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