Block will integrate the ‘tap to pay’ Square payments feature with Apple’s iPhone. The development is ongoing and the new technology will be tested with only a few selected sellers. Block will select the sellers through an early access program and work closely until the payment integration is completed. A tentative release date for the ‘tap to pay’ feature is not revealed by Block and Apple yet. However, reports state that the new payment partnership will be rolled out to Apple users by the end of the year.
Block said that sellers will be able to accept in-person contactless payments with their iPhones and Square Point-of-Sales (POS) app. Users can pay contactless without the need for any other additional hardware like card swiping machines among others.
Apple revealed that its upcoming ‘tap to pay’ feature will first be offered to Stripe and Shopify Point in the United States. The feature will then be rolled out to others subsequently after its release.
After the news of Block partnering with Apple broke out, its shares spiked 7% reaching their weekly highs of $89.
The development will open the gates for Apple to further broaden its payments network through Block. Apple has been adding new fintech services since 2019 after it launched its credit cards in collaboration with Goldman Sachs the same year.
It is reported that Apple is also working on another development that involves ‘buy now, pay later’ service technology. However, not many details about the development are made public and Apple has kept its workings under wraps.
A financial analyst revealed to Reuters that Apple is now looking to leverage payments and fintech. “Apple views payments as an important standalone business for the company and they are looking to leverage it,” said Shannon Cross, an analyst from Cross Research.