Apple’s Tap to Pay service has been available in the USA for a while now. Westpac and Tyro payments can now offer the service to their business clients, enabling shoppers to make contactless payments directly to a vendor’s iPhone without the need for a EFT machine. And, in the process, it ‘Sherlocks’ a number of other payment options.
Tap to Pay on iPhone lets businesses of any size accept in-person contactless payments on iPhone using Apple Pay, contactless credit and debit cards, and other digital wallets. No additional hardware or payment terminal needed.
Sherlocking is a colloquial term. It stems from when Apple introduced features to its platforms that make useful utilities redundant. The link provided gives a full description of the term’s origin. But the TL;DR is that companies like Stripe and Square may find their market position eroded. Many small businesses work on very tight margins. Avoiding the need to buy a third party terminal to receive payments lowers the bar for receiving payments.
Merchants can enable Tap to Pay on iPhone through a supporting iOS app on an iPhone Xs or later device running iOS 16.4 or later. Once enabled, merchants will simply prompt customers to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant’s iPhone, and the payment will be securely completed using NFC technology. Tap to Pay on iPhone also supports PIN entry, which includes accessibility options.
Apple says customers’ payment data is protected by the same technology that makes Apple Pay private and secure. All transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element, and as with Apple Pay, Apple doesn’t know what is being purchased or who is making the purchase.
Westpac and Tyro Payments are the first payment platforms in Australia to offer Tap to Pay on iPhone to their business customers. Additional payment platforms and apps, including ANZ Worldline Payment Solutions, Stripe, Till Payments, and Zeller, will make this secure and convenient capability available in the coming months.
Businesses can also sign up for Tap to Pay on iPhone through distribution partnerships, including through Telstra.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.