Apple set to shake up credit card payments
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Tap to Pay, included in Apple’s iOS 15.4 software update, allows small businesses to turn an iPhone into a payment terminal
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HOW iOS SOFTWARE UPDATE WILL WORK

New update will be available for iPhone XS (2018) model upwards utilising its Near Field Communication (NFC) chip

NFC antenna: Will use principle of inductive coupling to generate magnetic field which induces electric current in nearby EMV chip (on credit card). Data stored on
EMV can be transmitted to reader (iPhone) and transaction completed

11vbn EMV chip credit cards in circulation
             

Range: 4cm
                                    
EMV chip: Pioneered by Europay, MasterCard and Visa in 1994 – has become standard for payments made with credit, debit, or prepaid smart cards

CURRENT SYSTEMS (popular with small businesses) Square Reader (chip and PIN and contactless card reader): Acts as go-between from credit card to iPhone – costs around $50

Other systems more costly: Square Terminal ($300); Square Register ($800)
 
As well as accepting credit card payments, Tap to Pay will accept debit cards, Apple Pay and other digital wallets – such as those available on Android operating system    
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Sources: Bloomberg, MacRumors, Android Authority, Thales, Square © GRAPHIC NEWS