Apple may be setting up to compete with Square's contactless payments
Is Apple preparing to take on the mobile payment company, Square, Inc.? A recent purchase suggests as much.
Apple has reportedly acquired Mobeewave, a Montreal-based tech startup that empowers tap-based payments. It works like this: a vendor with the app installed can turn their near-field communication-equipped (NFC) smartphone or tablet into a contactless payment terminal.
So unlike Square, which depends on a card reader for payments, Mobeewave's technology can accept payments from NFC-equipped cards and smartphones with a tap. Apple's iPhones, notably, have come packing NFC tech since 2014.
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The timing of Apple's acquisition is notable coming just days after CEO Tim Cook's virtual appearance before Congress on Wednesday to field uncomfortable questions about antitrust concerns. You've likely interacted with Square's business at some point if you've ever swiped a credit card through a reader attached to an iPad in a store.
Contactless payments of the kind that Mobeewave offers aren't new, but interest has undoubtedly increased in the midst of the coronavirus pandemic. The less physical contact we're forced to have with hardware like credit card readers, the better.
The acquisition doesn't doesn't mean that Apple is definitively moving toward taking on Square with its own payments service. But the iPhone company has been moving more in the financial services direction in recent years, as evidenced by the introduction of the Apple Card (among other things).
Bloomberg, which reported the Mobeewave news, also pointed out that this is how Apple tends to operate around acquisitions. "Apple typically buys startups to turn their technology into features of its products," the report noted, adding that Mobeewave's tech could easily integrate with Apple Pay.
Topics Apple Innovations
Adam Rosenberg is a Senior Games Reporter for Mashable, where he plays all the games. Every single one. From AAA blockbusters to indie darlings to mobile favorites and browser-based oddities, he consumes as much as he can, whenever he can.Adam brings more than a decade of experience working in the space to the Mashable Games team. He previously headed up all games coverage at Digital Trends, and prior to that was a long-time, full-time freelancer, writing for a diverse lineup of outlets that includes Rolling Stone, MTV, G4, Joystiq, IGN, Official Xbox Magazine, EGM, 1UP, UGO and others.Born and raised in the beautiful suburbs of New York, Adam has spent his life in and around the city. He's a New York University graduate with a double major in Journalism and Cinema Studios. He's also a certified audio engineer. Currently, Adam resides in Crown Heights with his dog and his partner's two cats. He's a lover of fine food, adorable animals, video games, all things geeky and shiny gadgets.
