- Apple has announced its intentions to roll out a crypto-supporting merchant payments feature known as Tap to Pay.
- The feature will directly convert users’ crypto holdings into the USD equivalent requested by a merchant.
Apple wants to venture into the billion-dollar merchant payment industry using the newly announced Tap to Pay. The feature will essentially turn mainstream merchant iPhones into point-of-sale devices, and allow contactless payments in cryptocurrencies. All this is enabled by Apple’s near-field communication technology (NFC).
According to the announcement, Apple plans to extend the soon-to-be-launched Tap to Pay feature to “Apple Pay, contactless credit and debit cards and other digital wallets.” Customers with crypto-enabled cards such as Coinbase Card, and Crypto.com Visa Card will therefore be able to make payments in crypto using Tap to Pay.
Tap to Pay on iPhone will work with contactless credit and debit cards from leading payment networks, including American Express, Discover, Mastercard, and Visa,
Stripe, an Irish-American fintech will be the first to offer the Tap to Pay feature on the iPhone, the announcement says. More platforms while more apps will be incorporated within the year.
Apple enables crypto payments with Tap to Pay
Enabling merchant payments using cryptocurrencies has become a trend in recent times. For the iPhone maker, it began in August 2021, when Coinbase integrated mainstream payments platform Apple Pay, in addition to Google Pay. This allowed US-based Coinbase clients to purchase cryptocurrencies using bank-issued credit and debit cards via Apple Pay.
Coinbase, on the other hand, launched the Coinbase Card in June 2021. It directly converts crypto to US dollars, enabling users to make purchases and ATM withdrawals using their crypto holdings. Crypto exchange Crypto.com followed suit with a similar product – the Crypto.com Visa Card. Its design allows it to be added to Apple Pay and other major digital wallets. Block, which is under the helm of Twitter co-founder Jack Dorsey, recently added Lightning Network compatibility to the mobile payments service Cash App. This shortened the time for making payments and sending remittances in Bitcoin. The feature is now available all over the US, except for New York.
Related: Crypto.com announces global alliance partnership and principal membership with Visa
Apple has now taken a step further with its plans for Tap to Pay. Once launched, the Tap to Pay will be available on Apple Stores, iPhone XS, and later devices.
Back in Nov. 2021, Apple CEO Tim Cook revealed having added crypto to his portfolio but declined to approve the same for the giant tech company. He also noted that the firm had no immediate plans of accepting digital currencies as a means of payment for Apple products. While Tap to Pay does not allow direct purchases via Bitcoin, it converts cryptocurrencies into the US dollars equivalent requested by a merchant, just like the Coinbase Card.
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