Apple turns iPhones into Credit Card Payment Terminals

Apple is reportedly soon rolling out a new feature that turns iPhones into credit card payment terminals, which will open up new possibilities for small businesses. According to Bloomberg, SMB’s (or ultimately bigger companies) will be able to accept payments with the tap of a credit card or another iPhone onto the back of their own device - reducing the need for a terminal or other device.

How does it work?

As of right now, iPhone users need to be linked with external payment terminals through Bluetooth or an installed app to be able to process payments. With a new feature Apple allows users to turn their iPhones into their own payment terminals by tapping into the NFC technology already used for Apple Pay (although the latter isn’t confirmed yet). This way payments could be processed by just activating Bluetooth on an iPhone and connecting to another.

What does this mean?

It means that Apple is tapping into the financial markets once again as it previously did with Apple Pay and the Apple Card. With the new feature the tech giant rivals point-of-sale (POS) vendors such as Square and Lightspeed. For small business owners it means that accepting payments will get cheaper, faster and easier. Like a lot easier.

Can I turn my iPhone into a payment device?

Whether or not you can turn your iPhone into a payment terminal depends on a few different things. First of all, your iPhone needs the NFC chip. Second, your device probably has to be iOS 15.4 compatible since the feature it’s perfectly possible to be rolled out with this particular update. So in theory older models like the iPhone 8 or iPhone SE 2020 should also be able to act as terminal payments.

Also, please note that it still remains unsure whether Apple opts for a worldwide or phased rollout. 

Got any questions?