The US-headquartered multinational technology company, Apple, is set to allow users of its Apple Pay platform to transact with cryptocurrencies. This will arrive with “Tap-to-pay,” a new feature that will allow iPhone users to make contactless payments to merchants that accept Apple Pay as a method of payment. Tap-to-pay will essentially integrate third-party digital wallets to allow payments with crypto.
Apple Pay’s upcoming Tap to Pay feature will integrate digital wallets
Apple stated in a press release that the Tap to Feature which will roll out in the US will allow all kinds of merchants to “seamlessly and securely” use their iPhones as a point of sale (POS) device. Added to integrating digital wallets, Tap to pay will also allow merchants to accept payments made with contactless credit and debit cards without requiring any additional hardware or payment terminal. The feature will level on near-field communication (NFC) to make contactless payments possible.
Speaking of the feature, Jenifer Bailey, vice president of Apple Pay and Apple Wallet, noted that it would essentially create a new experience for businesses.
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, said Bailey.
Apple is partnering with leading payments platforms and app developers to roll out the feature. The statement mentions that contactless cards from American Express, Discover, MasterCard, and Visa will be available on rollout. The feature is open for other app developers to integrate.
Several digital wallets like those of Coinbase and Crypto.com already provide contactless cards for payments. These crypto exchanges can integrate Tap to pay to allow users to easily convert crypto to dollars in real-time for payments.
Crypto adoption is growing among payment providers
Apple Pay is only the latest payments platform to show interest in integrating crypto. Visa, PayPal, and MasterCard have rolled out their crypto payments integrations. Cash App, the payment platform owned by Jack Dorsey, recently took it further by integrating Bitcoin payments through the Lightning Network.
Similarly, traditional financial institutions are also making moves to accept crypto payments. Bitcoin payment solution provider, NYDIG, has announced several key partnerships that will allow traditional banks to offer their clients Bitcoin trading and custodial services.