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PayPal, Venmo to support Apple's Tap to Pay

Monday 7 November 2022 14:01 CET | News

PayPal has announced in their Q3 2022 earnings report that it will support, together with Venmo, Apple’s Tap to Pay on iPhones.

 

Having this option implemented as part of their tech offering will enable merchants to accept both contactless card payments and payments made via Apple Pay, or other digital wallets, such as Google Pay. Through this, merchants are given varied options of apps and services to choose from for payments’ acceptance. The Tap to Pay feature on iPhone was launched by Apple in February 2022 in partnership with Stripe and enabled merchants to accept payments without needing any additional hardware, something that will be done through Venmo and PayPal as well. 

PayPal is working on a few separate Apple-related programmes apart from Tap to Pay, the fintech having stated that Apple Pay will be added as a payment option for its unbranded checkout flows on merchant platforms, including the PayPal Commerce Platform. Furthermore, as per information provided by TechCrunch, US based consumers will be enabled to have PayPal and Venmo network-branded credit cards loaded to the Apple Wallet and used with Apple Pay in 2023. 

The contactless payment terminals market

As per the Research and Markets ‘Contactless Payment Terminals Global Market Report 2022’ the market is expected to grow at a global scale to USD 19.74 billion in 2022 at a compound annual growth rate (CAGR) of 21.4%, from the USD 16.25 billion in 2021. In addition, the market is believed to reach USD 43.42 billion in 2026, at a CAGR of 21.8%. 

The contactless payment terminals market comprises of contactless payment products and services sales by entities facilitating a secure payment method utilising a debit or credit card, smartcard, or another payment machine through means of radio-frequency identification (RFID) technology and near-field communication (NFC). Being devices that facilitate electronic fund transfers in a contactless manner, the contactless payment terminal systems can be used by the customer by tapping their payment card near a terminal that is equipped with this technology.  

When it comes to device types for said terminals, these include smartphones and wearables, smart cards, and point-of-sale (POS) terminals.  

PayPal has announced in their Q3 2022 earnings report that it will support, together with Venmo, Apple’s Tap to Pay on iPhones.

What is Tap to Pay and how does it work?

Utilizing a short-range wireless technology, NFC, tap to pay enables secure payments processing by tapping or hovering over a payment terminal with either a contactless chip-enabled card, payment-enabled mobile, or wearable device, eliminating the need to touch a payment terminal. A specialised version of RFID, NFC uses a specific RFID frequency to ensure accuracy and enable close-range interaction between two devices. When at an NFC-enabled payment terminal, information is passed back and forth between the terminal and the payment device in an encrypted manner, until the payment is complete. 

In the global space, tap to pay has been adopted by a wide range of players:

  • In November 2022, phos and Evalon launched a Tap to Pay solution in the US and Canada;

  • In September 2022, Prophius launched Tap on Phone technology by partnering up with Mastercard;

  • In July 2022, Live Payments, in partnership with Visa, launched a Tap to Phone service, and Adyen launched Tap to Pay for iPhones. 

  • In June 2022, Square integrated Apple's Tap to Pay on iPhone for its merchants, whereas MagicCube’s Tap to Pay solution was extended to enterprises and big box retailers;

  • In May 2022, Zettle by PayPal, a mobile payments company, launched Tap to Pay for small businesses in the UK;

  • In April 2022, Google Pay in collaboration with Pine Labs launched a Tap to Pay solution for UPI-based payment system. 


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Keywords: Tap-to-Pay, payment processing, contactless payments, payment gateway, payment methods, instant payments, mobile payments
Categories: Payments & Commerce
Companies: Apple, PayPal, Venmo
Countries: World
This article is part of category

Payments & Commerce

Apple

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PayPal

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Venmo

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