Apple unveils Tap to Pay, letting US merchants accept payments with an iPhone and a partner-enabled app “later this year”; partners include Stripe and Shopify

9to5Mac 2022-02-09 Chance Miller

Context & Ripple Effects

Apple’s launch pairs the iPhone with Stripe and Shopify rather than a standalone Apple merchant app, extending the partner-led model set out in the initial Stripe launch arrangement. Related coverage shows that model subsequently drew point-of-sale providers into the feature: Square first planned integration before making Tap to Pay available to US sellers.

The significance is less the contactless capability alone than its distribution through merchant software. Later plans from PayPal and Venmo indicate that payment platforms, not just Apple’s original partners, had an incentive to add iPhone acceptance.

First-order effects

US merchants using partner-enabled apps gain a way to accept contactless payments on an iPhone, while Stripe and Shopify become the initial software routes into the service.
Apple makes the iPhone a merchant-acceptance endpoint within partners’ checkout products, rather than limiting its payments role to consumer checkout.

Second-order effects

Square faces pressure to match the capability in its point-of-sale app, a response it later formalized through its Tap to Pay early-access program.
PayPal and Venmo gain a reason to integrate the feature so their merchant products are not confined to conventional payment hardware; their later support plans reflect that competitive response.

Third-order effects

If payment platforms continue to adopt the feature, merchant contactless acceptance shifts toward software-distributed iPhone capability, with platform integrations determining which sellers can use it.
Apple’s later expansion to the UK through Revolut and Tyl by NatWest suggests a repeatable country-by-country partner rollout, concentrating access through local payment platforms rather than a single global Apple merchant product.

The trend: Tap to Pay is part of the shift from dedicated merchant terminals toward contactless acceptance embedded in payment-platform software on smartphones.

Discussion

@patrickc Patrick Collison on x
Stripe is partnering with Apple to enable Tap to Pay on iPhone: https://www.apple.com/.... (You can sign up to be notified when it's available over at https://t.co/....) https://twitter.com/...
@tim_cook Tim Cook on x
We just introduced Tap to Pay on iPhone, a great way for millions of small businesses to accept contactless payments right from their iPhone. It's easy, secure, and will be coming out later this year. https://www.apple.com/...
@chancehmiller Chance Miller on x
Interesting that this isn't a system feature, but rather Apple is opening it up to third-parties. Preemptively responding to antitrust concerns? First implementation coming this spring via Stripe and Shopify, Apple says. https://twitter.com/...
@bzamayo Benjamin Mayo on x
It's cool that the ‘hold to pay’ place for cards is the front of the phone, not the back https://twitter.com/...
@lukemiani Luke Miani on x
Ironically this won't work with their own Titanium Apple Card because it doesn't support tap payments RIP https://www.apple.com/...
@rsgnl Joe Rossignol on x
Then vs. Now https://twitter.com/...
@snazzyq @snazzyq on x
That said, the fact that you still need a processor like Stripe is a big plus. Apple doesn't really want to get involved in payment processing and I don't think they should either. Good move.
@snazzyq @snazzyq on x
I feel like Square and Venmo should be scared, but I also feel like this is another Apple Pay feature that literally nobody will ever use because Apple sucks at actually getting businesses to use their software. https://twitter.com/...
@nyse @nyse on x
Congratulations to @stripe and @Apple on the continued innovation in digital payments and how you are making it easier for entrepreneurs and consumers. https://twitter.com/...
@simplepc Simon Salvin on x
@bzamayo The NFC chip is in the opposite corner to the camera, I have to line it up fairly accurately when scanning my blood glucose sensor. I did find it works better from the back when scanning my insulin pen.
@tobi Tobi Lutke on x
exciting news by Apple. tap to pay will be available to all Shopify POS merchants once it's released https://www.apple.com/...
@ishanagarwal24 Ishan Agarwal on x
People seem to be focusing too much on the “Apple Pay” part and not the fact that iPhones can now be used as payment terminals in the USA without requirement of any extra hardware which is pretty cool.
@bzamayo Benjamin Mayo on x
almost like the notch is the landing zone :P
@vadimyuryev Vadim Yuryev on x
No additional hardware required. Just tap a credit card onto an iPhone to accept payment. R.I.P. Square-branded card swipe accessories. Even more ready for portless iPhones in the future. https://www.apple.com/... https://twitter.com/...
@callebtc @callebtc on x
If this has an API, it's going to be wild for iOS Lightning wallet devs. https://twitter.com/...
@trungtphan @trungtphan on x
Apple's card reader partnership with Stripe, explained [Image: Grim Reaper meme with Apple now knocking on Square's door]
@tomwarren Tom Warren on x
I'm hoping this isn't US only. I use Apple Pay every day, so this would be even more useful for small businesses https://twitter.com/...
@rsgnl Joe Rossignol on x
Apple has a growing list of payments-related things that I wish would launch in Canada: Apple Cash, Apple Card, and now Tap to Pay on iPhone.
@chancehmiller Chance Miller on x
Alternatively, maybe we're seeing this enterprise-y implementation of the tech now and we'll get a peer-to-peer Tap to Pay feature as part of iOS 16. https://twitter.com/...
@benedictevans Benedict Evans on x
(It's unusual of Apple to announce a developer feature like this outside of WWDC )
@stalman Tyler Stalman on x
Receive contactless payments on your iPhone, a huge leap forward for garage sales https://www.apple.com/...
@erenbali Eren Bali on x
Is this “one click checkout?” https://twitter.com/...
@sarthakgh @sarthakgh on x
So um Apple declares war on very large set of incumbents and startups helping merchants accept payments https://t.co/0WJYgtPcgs
@callumj Callum Jones on x
Since this is a framework feature I don't see what is stopping $SQ from adopting this and mitigating the “Square is doomed” bs. https://twitter.com/...
@benedictevans Benedict Evans on x
Apple unveils contactless payments via Tap to Pay on iPhone (already possible on android of course, and the EU is putting pressure on Apple to open up NFC further) https://www.apple.com/...
@edwinwee Edwin on x
An iPod, a phone, an internet communicator, and a @Stripe Terminal reader. These are not four separate devices. This is one device. https://twitter.com/...
@collision John Collison on x
A widescreen iPod with touch controls, a revolutionary mobile phone, a breakthrough Internet communications device, and a contactless card reader. An iPod, a phone, an Internet communicator, and a card reader. Are you getting it? https://twitter.com/...
@patio11 Patrick McKenzie on x
For any of you SaaS platforms whose ultimate customers collect payments in person, you may be interested in: https://twitter.com/...
@markgurman Mark Gurman on x
Apple's “Square killer” is now official https://www.apple.com/... https://twitter.com/...
@ishanagarwal24 Ishan Agarwal on x
While India awaits Apple Pay or Apple Card, the brand has announced a cool new “Tap to Pay” feature for US Consumers. It allows any iPhone XS & above device 📲 to accept NFC payments through another iPhone or Contactless Cards 💳 directly. Would be useful for small retailers! https…
@jerrycap @jerrycap on x
“Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring. *Additional payment* platforms and apps will follow later this year.” https://twitter.com/...
@deitaone @deitaone on x
*Apple to Introduce Tap to Pay on IPhone $AAPL

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