Square launches Apple's Tap to Pay in Point of Sale app
Square, the merchant payments platform of Jack Dorsey's Block, announced that its Point of Sale app now makes Apple’s Tap to Pay technology available to sellers.
Why it matters: The launch lowers the barrier to entry for merchants to adopt Square's platform, enabling them to accept contactless payments with no additional hardware necessary.
How it works: Through the Square Point of Sale app, any merchant with a compatible iPhone will be able to accept Tap to Pay payments from other iPhone users and other NFC-enabled phones and cards.
- In addition to Apple Wallet, the technology accepts payments from Google Pay and Samsung Pay for Android users, as well as contactless credit or debit cards.
Flashback: Apple announced Tap to Pay in February, with Stripe and Shopify as its initial launch partners.
- At the time, some analysts saw the tech as a possible challenge to Square’s business, leading to a quick sell-off of Block shares.
What we're watching: The availability of contactless payments could cut into Square's hardware revenue but ultimately lead to higher profitability.
- In the second quarter, hardware sales reached $48 million, which was up 10% year-over-year and 29% on a three-year basis.
- Hardware is a loss-making business that Square uses as a merchant acquisition tool, however, and generated a gross loss of $35 million in the quarter.