iPhone users can now TAP to make payments! But HOLD ON, this is different

iPhone users can now tap to pay via the NFC based payment systems to other iPhone users. However, there are limitations that you need to know.

The Tap to Pay on iPhone will work with contactless credit and debit cards in the US only. (Apple)

iPhone users can now simply TAP and make payments! It sounds like the NFC payment feature from Android phones but there is a twist. So far, both Android and iPhone users were able to make payments to merchants and shopkeepers only if they have a POS machine that supports NFC. With Apple's Tap to Pay, this POS machine goes out of the scene as their iPhone becomes the POS device in the transaction.

Yes, that means your local grocer can now have his/her iPhone act as a method of taking digital payments. The merchant can ask the customer to hold their iPhone, Apple Watch, NFC-based payment card, or a digital wallet near his/her iPhone while making the transaction. Apple says that the payment will happen automatically as soon as the customer does the “tap-to-pay” function. This system negates the need for a dedicated POS machine and enables small businesses to take advantage of a digital payment system.

iPhone Tap to Pay feature gets announced

“At checkout, the merchant will simply prompt the customer 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. No additional hardware is needed to accept contactless payments through Tap to Pay on iPhone, so businesses can accept payments from wherever they do business,” says Apple.

“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,” says Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet.

However, Tap to Pay only works in the US for now. The Tap to Pay on iPhone will work with contactless credit and debit cards from American Express, Discover, Mastercard, and Visa, says Apple.

Tap to Pay supported iPhones

The Tap to Pay feature is supported on the iPhone XS series, iPhone XR, iPhone 11 series, iPhone SE 2020, iPhone 12 series, and iPhone 13 series.