iPhone manufacturer Apple Inc. (AAPL) says that iPhones will start accepting credit cards without any extra hardware. The tech giant is planning to launch a new service which will allow small businesses to accept payments directly on their iPhones without any extra hardware. This development was revealed by insider sources involved with the matter.
In order for payments to get accepted on an iPhone, currently retailers use payment through terminals to receive money on their iOS devices which are connected through Bluetooth such as Block Inc.’s (SQ) Square payment systems.
According to a post from Bloomberg, the new feature will rather turn the iPhone into a payment terminal allowing the merchants to accept payments with the tap of a credit card or another iPhone onto the back of the device.
The report further says it’s highly likely that the system will use iPhone’s near field communications or NFC chip which is currently being used by Apple Pay. This feature might be rolled out through a software update in a few months.