Apple unveils contactless payments via Tap to Pay on iPhone (apple.com)

Article summary

Apple has announced a new feature called Tap to Pay on iPhone, which allows merchants to accept contactless payments using their iPhone and a partner-enabled iOS app. This feature will be available to payment platforms and app developers to integrate into their iOS apps, with Stripe being the first to offer it to their business customers. The payment process uses NFC technology and does not require any additional hardware. Apple emphasizes the security and privacy of the feature, with transactions being encrypted and processed using the Secure Element.

Main themes

• contactless payments
• mobile payments
• security and privacy
• NFC technology
• payment processing
• innovation and adoption
• regional variations
• connectivity and infrastructure
• payment systems and banks
• app security and vetting

What commenters say

• The introduction of Tap to Pay on iPhone is a significant development in the adoption of contactless payments, but it also raises concerns about security and skimming.
• The risk of skimming with Tap to Pay on iPhone is comparable to that of traditional card terminals, and can be mitigated through measures such as displaying the payment amount on the customer's device and obtaining their consent.
• The use of Tap to Pay on iPhone may be vulnerable to man-in-the-middle attacks, which could allow attackers to intercept and alter payment information.
• The feature's security relies on Apple's control over the screen and the NFC hardware, as well as the vetting of payment processors and app developers.
• Some commenters argue that the feature is not particularly innovative, as contactless payments have been available in other forms for many years.
• Others suggest that the feature could be improved by inverting the payment flow, so that the customer receives an invoice ID from the NFC and then works directly with Apple servers to pay.
• The availability of Tap to Pay on iPhone may vary by region, with some countries having more widespread adoption of contactless payments than others.
• The use of Tap to Pay on iPhone may also be affected by the availability of connectivity, with some transactions requiring a direct connection to the internet.
• The security of Tap to Pay on iPhone is also dependent on the security of the underlying payment systems, including the payment processors and banks.
• Some commenters express concerns about the potential for rogue apps to exploit the feature and steal customer data.