According to a Bloomberg report, Apple has purchased mobile pay hub company Mobeewave for $100 million.
Mobeewave enables shoppers to use their smartphones for contactless payments and P2P payments, similar to its existing Apple Pay service.
The real difference is that Mobeewave technology could turn any iPhone or IOS devices into a payment acceptance device, therefore creating a simple way for small and micro businesses to accept contactless payments.
Apple Becoming A Merchant Processor?
With this acquisition, Apple may be positioning itself to become a competitor to Square, Stripe, and other small business payment processors.
The company has not commented on the acquisition and if this purchase does show interest by Apple to enter the merchant processing business.
However, as contactless payments are rising steeply during the COVID-19 pandemic, and more consumers preferring this payment method, this may be a good time to jump on this popularity wave as consumers and small businesses distance themselves from cash and in-person transactions.
Also, Square came under fire earlier this year for holding back a reserve on some service businesses which resulted in impacted small business owners not having access to funds for up to 120 days.
If Apple does plan to enter the merchant processing business, it would bring a well known and trusted brand into this industry segment, offering another alternative to small business owners that felt slighted by Square’s reserve policy.