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Apple (NASDAQ:AAPL) is reportedly working on a new service that would let small businesses take credit card payments directly from their iPhone, without the need for additional hardware, Bloomberg reported.
The new feature has been worked on since approximately 2020 and likely stems from the company’s acquisition of Mobeewave, a Canadian financial technology company that developed the technology to let smartphone users take credit card payments by tapping the card against the phone. The technology would likely use near field communications, or NFC, which also lets Apple Pay users pay for items at shops.
Apple (AAPL) shares are up slightly less than 1% in pre-market trading to $160.93.
Cupertino, California-based Apple has not responded to a request for comment from Seeking Alpha.
The move, which could be part of an upcoming software update, may impact payments providers, such as Block’s (NYSE:SQ) Square, PayPal (NASDAQ:PYPL), Verifone (NYSE:PAY) and Ingenico.
Bloomberg added that the rollout of the feature may start “in the coming months,” which would be close to when Apple is expected to announce several new hardware products, including the iPhone SE with 5G and an iPad Air and perhaps a new Mac using Apple’s M1 processor.
Apple (AAPL) is set to report first-quarter earnings after the close on Thursday, where it is expected to highlight strength in the iPhone, as well as its Services businesses, multiple analysts said.
