The Apple logo is seen at an Apple Store, as Apple's new 5G iPhone 12 went on sale in Brooklyn, New York, U.S. October 23, 2020.  REUTERS/Brendan

Apple to turn iPhones into payment terminals, rival Square - Bloomberg

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2022-01-27 16:00:04

The Apple logo is seen at an Apple Store, as Apple's new 5G iPhone 12 went on sale in Brooklyn, New York, U.S. October 23, 2020. REUTERS/Brendan McDermid

Jan 27 (Reuters) - Apple Inc (AAPL.O) is planning a new service that will allow small businesses to accept payments directly on their iPhones without any extra hardware such as Square's payment terminals, Bloomberg News reported on Wednesday.

Currently, retailers can accept payments on an iPhone by using payment terminals connected to their iOS devices through Bluetooth, a method used by Block Inc's (SQ.N) Square payment systems.

The new feature turns the iPhone itself into a payment terminal and will let merchants accept payments with the tap of a credit card or another iPhone onto the back of their device, Bloomberg reported, citing people with knowledge of the matter.

If the iPhone maker keeps this service exclusive to its own apps or payment processing system, it would bypass Square's services that are used widely by small businesses to accept payments. It could also affect other point-of-sale machine makers such as Verifone and Ingenico.

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