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Apple (NASDAQ: AAPL) reportedly acquired a generationable Canadian start-up that can be used to turn each iPhone into a contactless payment acceptance device, directly challenging Square (NYSE: SQ), which is the leading provider of cellular Devices and payment software.
Bloomberg says Apple is paying $100 million to buy Mobeewave, a generation manufacturer that allows mobile devices to pay users’ bills without more hardware.
Once the Mobeewave app is installed on a smartphone with a smartphone supplied with a near-box communication chip (NFC), a customer can simply tap their credit card opposite the back of the phone to make a payment without the desire for keys, cables, card readers. Matrix or any other material. Buyers can also enter the amount they wish to pay on their own teleteletero phone and tap the recipient’s teleteletelet phone to make the payment.
Samsung partnered with Mobeewave to allow its smartphones to use the technology, and last year its venture capital arm, Samsung Venture Investment, invested in the company. This follows an investment led by NewAlpha, Mastercard and Forestay Capital.
Apple iPhones have been supplied with NFC chips since 2014, meaning the acquisition can undermine Square’s market position as it relies on card readers to transact. With Mobeewave, the tech giant’s popular smartphones would also be payment terminals, without the need for a dongle.
Although contactless payment systems are not new, the coronavirus pandemic is of greater interest as consumers and stores seek tactics to restrict physical contact, even with a card reader.