Apple (NASDAQ:APPL), the largest publicly-traded company in the world, is predicted to enable credit card transactions directly via its ubiquitous iPhone.
The new feature will challenge all credit card terminal providers like Block/Square (NYSE:SQ) that generate massive amounts of revenue by processing payments via credit and debit cards.
According to a report by Bloomberg, people with knowledge of the new feature state that Apple’s NFC or near field communications chip on the iPhone will facilitate payments with a tap of a card. The feature is said to have been in the works since 2020, following the acquisition of Canadian Fintech Mobeewave that created the tech.
Apple has been tip-toeing into the Fintech space for years now with its in-house digital wallet, popular Apple Card (in partnership with Goldman Sachs) and Apple Pay. Some reports have even shared that Apple is looking at digital aset offerings, but so far – no crypto wallets yet.
If Apple does offer tap payments for businesses it could quickly compete due to the widespread popularity of its iPhone that numbers in the hundreds of millions. Additionally, by competing on fees, as well as features, Apple could hoover up market share – over time.
Apple is well known for its pursuit of tech perfection and choosing not to be first in a space but learning from the experience of others – and then doing it better. As Apple already has the pieces of the puzzle in place, it should just be a matter of time before it offers NFC payments – reportedly with an update of iOS within the coming weeks. Then comes small business lending…