iPhones could soon be able to act as mobile payment terminals using the technology of a startup that Apple has reportedly acquired.
Mobeewave's technology in Montreal, Canada, enables customers to make payments by tapping their credit card or smartphone on another smartphone. The start-up app only requires NFC chips, so no additional hardware such as card terminals is required.
Mobeewave describes on its official website how its app processes transactions. After entering the transaction amount in the app, the customer's credit card is typed on the back of the smartphone. The app then processes the payment.
Apple bought Mobeewave for about $ 100 million, Bloomberg reported, citing a source familiar with the matter. The start-up's technology will work with iPhones that have been carrying NFC chips since 2014. Apple has kept dozens of Mobeewave employees who will continue to work in Montreal.
Digital Trends has asked Apple and Mobeewave for confirmation and further comments on the acquisition. We will update this article as soon as we receive feedback.
Apple's payment technology
Apple introduced Apple Pay in 2014, which allows iPhone owners to pay for their purchases by tapping their devices at the store's terminals. The Apple Card followed last year, which was introduced in collaboration with Goldman Sachs and MasterCard.
When Apple integrates Mobeewave technology into Apple Pay and Apple Card on iPhones, Apple competes more directly with Square, which provides hardware and software for mobile payment options.