iPhones will soon support debit and credit card payments. The new feature makes some payment terminals obsolete.
Apple shares the news in an official blog post. Sometime in the next year, iPhones in the US will receive an update to support debit card, credit card and Apple Pay payments.
The feature (Tap to Pay) runs on NFC chips and third-party software. NFC chips (near field communications) are already incorporated into modern iPhones. Apple is collaborating with multiple payment processing platforms to support the feature.
Last January, Bloomberg cited anonymous sources that correctly predicted the news.
Stripe, a developer of payment processing software, is the first partner to support the feature. Stripe’s US customers will be able to use iPhones as payment terminals “come spring”. According to Apple, other parties will follow later in the year. The organization does not confirm if and when ‘Tap to Pay’ becomes available outside the US.
Not everyone is excited about the update. The feature may cause payment terminal sales to plummet. Payment terminal manufacturers are under pressure.