Apple will launch its new Tap to Pay feature for the iPhone later this year that will allow businesses to accept Apple Pay, contactless credit and debit cards, and other digital wallets securely and seamlessly through a simple tap to their iPhones.

The new feature will employ near field communications (NFC) technology for making payments, including payments between iPhones. Merchants will be able to accept payments by just tapping their phones with the iPhones of customers with the help of a partner-enabled iOS app.

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Apple added that it would not track any data concerning what was being purchased or who was buying it, emphasising the service’s privacy feature, reported NDTV Gadgets.

Originally, the iPhone did act as a contactless payment tool since Apple Pay launched in 2014. The older mechanism required merchants to have point-of-sale hardware to accept contactless payments. The new capability, however, will empower millions of US merchants, small businesses, and large retailers, to use an iPhone to accept Apple Pay with just a simple tap to their iPhone. No additional hardware or payment terminal is needed for this new feature, reported Indian Express.

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Only the users of the latest iPhones -- iPhone Xs and later -- will be able to use the new Tap to Pay feature.

Tap to Pay on iPhone will also be available for platforms and app developers to integrate into their iOS apps. Stripe will become the first payment platform to offer Tap to Pay on iPhone. Later, Shopify will join as a point-of-sale app this spring. Other payment platforms and apps are expected to follow later this year, according to Apple Newsroom.

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Google and Samsung have already announced Android devices that act as contactless payment terminals as well, but those announcements have been primarily aimed at places outside the US, where contactless payment habits are well established. The new iPhone feature, however, is aimed at the US, which is a more lucrative market, reported Indian Express.

(Edited by : Shoma Bhattacharjee)