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The new feature will turn Apple’s iPhone into a payment terminal.
NICHOLAS KAMM/AFP via Getty Images
Shares of
Block
fell 2.32% in premarket trading, after a report said
Apple
is planning a service that will let retailers accept payments on iPhones without the need for extra hardware.
Apple (ticker: AAPL) could launch the new feature via a software update in the coming months, Bloomberg reported on Wednesday, citing people with knowledge of the matter.
The move would place Apple in direct competition with Block’s payments service Square. At present, for payments to be accepted on an iPhone, retailers have to use payment terminals that are connected with their iOS devices via Bluetooth, such as
Block
(SQ).
The new feature will turn the iPhone into a payment terminal, allowing merchants to accept payments with the tap of a credit card or another iPhone onto the back of their device, the report said.
Shares of Block were down 1.73% lower in premarket trading Thursday. The stock is down more than 31% so far this year.
The system is likely to use iPhone’s near field communications, or NFC, chip that is currently used for Apple Pay, the report added.
Apple has been working on the new feature since around 2020 when it bought Mobeewave for $100 million. The Canadian start-up has developed technology to let shoppers tap their credit card or smartphone on another phone to process a payment.
The report didn’t say whether the new feature would be branded as part of Apple Pay, or whether the tech giant will team up with an existing payment network or launch the service independently.
Apple didn’t immediately respond to an emailed request for comment.
Write to Lina Saigol at lina.saigol@dowjones.com
