Your Apple iPhone Could Turn Into Payment Terminals with This Acquisition!

While Apple tries to keep most of its business acquisitions and takeovers a secret under the wraps, recently one such acquisition by Apple was uncovered by Bloomberg. If reports are to be believed, Apple has recently acquired a Montreal based start up – Mobeewave Inc.

Before we go ahead, you may want to know more about Mobeewave, so here it is. For the uninitiated, Mobeewave Inc., founded in 2011, is a financial services and mobile payment company that is based in Montreal, Quebec. They have created the world’s first and only mobile payment solution that turns a Near Field Communication (NFC) phone into a mobile payment terminal (mPOS). Their technology takes advantage of the Embedded Secure Element (eSE) available in modern smartphones devices that allows the phone to securely receive payment transactions made with contactless cards and wallets.

The Mobeewave website shows the process of using their system in 3 easy and simple steps:

  1. Step 1- Put in the transaction amount.
  2. Step 2- Tap the client’s card on the back of your device.
  3. Step 3- Payment processed on your device.

While that should provide a decent background into the tech start up, Apple has now set their sights on that tech it seems. Mobeewave needs only an NFC chip to function that enables users to tap their mobile or credit cards to another phone to process payments. iPhone has used NFC chips in their devices ever since the iPhone 6. Although Apple Pay allows shoppers to tap their iPhones for payments at retail outlets, incorporating Mobeewave tech could potentially diminish the need for hardware like a card reader.

While there may be a number of ways for Apple to make use of the newly acquired systems, this feature could pave the way for them to expand their Apple Pay platform and could even be integrated into Apple Card and the Apple Wallet app as well.

As per Bloomberg, the deal cost Apple roughly about $100 million, while Mobeewave has retained their employees. However, both parties have remained mum on the transaction. Apple has only released a standard templatised response related to the matter stating that “Apple buys smaller technology companies from time to time and we generally do not discuss our purpose or plans.”

This move comes around the same time as Tim Cook’s recent comments on Apple’s strategy for expansion and acquisition of other companies and emphasised on implementing the tech of the companies that they acquire into the iPhone.

Samsung had previously teamed up with Mobeewave as well, becoming an investor in order to incorporate their tech into Samsung’s own flagship handsets, turning some of their phones into payment terminals for small businesses.

Notable, over the past few months, Apple had taken over a few number of other smaller businesses such as the weather app Dark Sky that now serves as the basis of new features in the iOS 14 update for the weather app on the iPhone, the Seattle based AI startup- Xnor.ai and Next VR, a virtual reality company focused on providing VR experiences for viewing live events and such.

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Management student who likes to write articles at times, into mobile photography and likes to cook as a hobby.

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