To take payments, sellers will no longer require additional gear.
Sellers who use Square's Point of Sale app will soon be able to accept payments using only an iPhone. The mobile payment startup has stated that it is collaborating with Apple to integrate the feature into its app, and that the service will be available to the general public later this year. Because sellers would no longer need to use Square's add-on devices and terminals, it will give an easy-to-use payment option. Customers just tap their credit cards, debit cards, or phones with digital wallets such as Apple Pay on the seller's iPhone to complete the transaction. It does require sellers to have an iPhone XS or later handset, but if they already have one, there will be no additional hardware costs.
When Apple debuted Tap to Pay in February, it was viewed as a product that could put firms like Square out of business. However, the internet behemoth stated at the time that it will "operate closely with top payment platforms and app developers throughout the payments and commerce industry," and Square appears to be on that list. Last month, Apple was testing the service at its Cupertino visitor centre, allowing staff members to take payment using the technique.
While the service will not be available to the general public for some time, Square has launched an Early Access Program to allow select merchants to test it out. On its website, the company offers a sign up page where vendors may enter their information to learn more about it.
Square has announced that its existing point-of-sale app will support Tap to Pay on iPhone, allowing users to accept contactless payments without the need for additional hardware.
Apple revealed the function in February, and it essentially turns an iPhone into a contactless payment terminal. Square has now announced that the feature will be supported in its iOS app.
"With Tap to Pay on iPhone, retailers will be able to collect contactless payments seamlessly and securely using only the Square POS app and an iPhone," Square said.
Square's existing capabilities, such as marketing and loyalty programs, product inventory management, and business banking tools, would be enhanced by the new functionality, according to the payment giant.
Square says the new function will be available later in 2022, but it is launching an early access program for a limited number of retailers on Tuesday.
Apple stated at the time of launch that Stripe will be an early adopter of Tap to Pay on iPhone once it became publicly available.
Square is the market leader in in-person payment processing, whereas Stripe focuses on e-commerce and internet payments. Now that Square has joined the party, the capability will be available to a large section of the business payment system industry.
