The new iPhone will feature ‘Tap-to-Pay’ crypto transactions

Smartphone manufacturer Apple Inc. announced a new Tap-to-Pay feature on the Apple Pay app. Stripe will be the first company to offer Tap-to-Pay to their business clients. The merchant will need to have at least an iPhone XS and maintain different payment methods, including cryptocurrencies.

According to a press release on February 8, Apple announced the new Tap-to-Pay feature for the iPhone. This feature enables millions of Apple Pay merchants to easily facilitate transactions using a simple tap regardless of the payment method.

Apple announced that apart from Apple Pay itself, contactless credit and debit cards, as well as other digital wallets, will also be able to make the transactions without the need of any third-party hardware or payment gateway.

The merchant’s phone will need to have a supportive iOS app. The customer can then bring his phone close to the merchant’s phone and secure payment via the NFC technology. Stripe halted support for bitcoin payments in 2018. However, in late November 2021, the CEO told CNBC that the company is open to processing payments made with crypto.

“As more and more consumers are tapping to pay with digital wallets and credit cards, Tap-to-Pay on iPhone will provide businesses with a secure, private, and easy way to accept contactless payments and unlock new checkout experiences using the power, security, and convenience of iPhone” stated Apple Pay and Wallet’s Vice President Jennifer Bailey, adding:

“In collaboration with payment platforms, app developers, and payment networks, we’re making it easier than ever for businesses of all sizes — from solopreneurs to large retailers — to seamlessly accept contactless payments and continue to grow their business.”

This translates into crypto payments because recently, Coinbase and Crypto.com both launched their own debit cards. The Coinbase Card and the Crypto.com Visa Card allows user to use their acquired cryptocurrencies as payment methods.

Both the companies further integrated with payment giants Apple Pay and Google Pay. This enabled users to facilitate payments using their cryptocurrencies via either of the two apps.

“Coinbase will automatically convert all cryptocurrency to US Dollars and transfer the funds to your Coinbase Card (less conversion fees) for use in purchases and ATM withdrawals,” Coinbase said regarding the process of these transactions.

Therefore, with Apple now activating the Tap-to-Pay feature, accepting said payments directly to and from an iPhone will become easier for every business or retailer.

Currently, more than 90% of all US retailers accept Apple Pay, and with this feature, pretty much any business or retailer with an iPhone can accept payments with Tap-to-Pay. So put simply, crypto can be used as a transaction method virtually any and everywhere in the US.

Apple has been eyeing the crypto space for a while, but it has been pretty secretive in traditional Apple fashion. However, one of the early indications of interest in this space was when Apple listed a job offer in late May 2021 for a business development manager specializing in alternative payments. The job posting highlighted the need for five or more years of experience working with or in cryptocurrency payments and digital wallets.

In August 2021, Coinbase started accepting Apple Pay and Google Pay for crypto purchases. Suppose the customer has a debit or credit card in their Apple Wallet, either Visa or Mastercard. In that case, Apple Pay appears as a payment option when using an iOS device that supports Apple Pay or a Safari web browser. Coinbase also introduced the Coinbase Card in June 2021. The Coinbase Card is a Visa debit card. The card can be added as a standard debit card to Apple Pay and Google. The pilot phase of the rollout saw customers receiving 1% back in bitcoin or 4% back in Stellar Lumens. In addition, Coinbase can convert crypto to fiat in Real-Time, making crypto payments via Tap-to-Pay possible across a wide array of merchants. Crypto.com also launched their own Visa Card, which can be added to Apple Pay and other digital wallets.