Late on Friday Bloomberg reported that Apple has acquired Mobeewave Inc, a Canadian startup that has in-house technology to transform iPhone into mobile payment terminals As per the report:
Mobeewave’s technology lets shoppers tap their credit card or smartphone on another phone to process a payment. The system works with an app and doesn’t require hardware beyond a Near Field Communications, or NFC, chip, which iPhones have included since 2014.
The technology Mobeewave Inc. has Apple could implement into Apple Card and Apple Pay, allowing users to use it a wider variety of merchants as it won’t require additional hardware. The startup based in Montreal has retained it around dozens of employees who continue to work out of Canada.
The purchase and technology would place Apple better off against Square, a current leading provider of payment hardware and software, and Samsung. Unlike iPhones, Samsung Pay, the Android maker’s mobile payment system works with the majority of payment terminals without needing extra hardware on the merchant’s side.
While Apple Pay has and does expand quickly, requiring stories and shop owners to have Apple Pay supported payment terminals could be slowing down the spread. In long term hopes, Apple’s acquisition of Mobeewave Inc. would strip the requirement but could be a deterrent to Apple’s strong stance on the privacy and security of Apple Pay.