Apple Will Turn Its IPhone Into A Device That Can Make Transactions

Apple is turning its iPhones into devices that can make debit or credit card transactions. (photo: doc. unsplash)

JAKARTA - Apple is rumored to be turning its iPhone into a device that can make debit or credit card transactions without the need for additional hardware. These changes will take effect in the iOS 15.4 update.

This technology will be carried out by a Canadian startup, Mobeewave, which was previously acquired by Apple in 2020. The company came to create assets that would allow smartphones to process credit card payments via a built-in chip aka NFC, like the one Apple Pay uses in all modern iPhones.

Mobeewave is also known to be working with Samsung to bring similar payment acceptance functionality to its pre-acquisition Galaxy series smartphones.

Mobeewave technology will make it easy for customers to transact by simply tapping their chip-enabled debit or credit card, or even another NFC-enabled smartphone, onto the back of the iPhone to initiate payment processing.

Previously, businesses that wanted to process physical credit cards via an iPhone or iPad had to rely on an external device, usually plugged into their iOS model or connected via Bluetooth.

Launching ZDNet, Friday, January 28, if Apple's news proves to be true, then the need for such hardware could soon disappear. This would put companies such as those that made the hardware and platforms that supported iOS credit card transactions to date, in a vulnerable position.

Since current iPhones already have NFC technology, this is not a feature that will be associated with a hardware update.

According to Bloomberg, a version of the new payment offering is expected to ship with the first beta of Apple's iOS 15.4 update in the coming months. It's likely to coincide with Apple's rumored debut, such as a revamped iPhone SE, new Mac, or updated iPad.