As a step forward converting its iPhones into contactless payment stations, Apple has acquired a payment start-up named Mobeewave.
Why this start-up is important particularly?
Mobeewave technology transforms cell phones into payment terminals. As reported, Apple has paid $100 million to buy Mobeewave, according to Bloomberg News in the past months of 2020. The mobile payment start-up provides technologies for near-field communications (NFC) that can transform mobile into contactless payment terminals.
What NFC deemed important?
NFC facilitates authentication, communication, and sharing in close range (approx. 10cm) and can also be used for contactless services such as sharing, reading, and writing of information, location, network management, and payment. While the launch of NFC devices by major manufacturers and the announcement by service providers of successful digital services make the industry strong, there are still considerable integration challenges for different devices.
For several years until today, modern phones have incorporated NFC. Mobile payment solutions such as Apple Pay and Google Pay uphold this system as well. By setting an amount -like a limit on your current credit card and just like top-up, this technology enables people to tap their mobile device to reach the payment app and then pay the amount by only placing the phone near to payment stations. In other words, Mobeewave allows users to turn their phone into a payment terminal.
The Background of Mobeewave
Mobeewave allows consumers with only their phones to support contactless payments, without any need for additional hardware. The business has deals in place with the National Bank of Canada, also the Commonwealth Bank of Australia, and Polskie Platnosci. The tech start-up Mobeewave also has a deal in place to incorporate Samsung handsets with its technologies. Apple’s competitor Korean tech giant Samsung is also an investor in Mobeewave as well. The group, founded in 2011, has raised $26.6 million over four rounds of funding.
Why has Apple chosen to invest in NFC payment technology?
The acquisition of this mobile payment tech start-up would add an added opportunity to turn to Apple for the sole trader, offering a way of taking card payments without the need to buy a different card reader from Square and iZettle.
Since the pandemic boosted the contactless lifestyle in 2020, Apple appears to be hurrying up and dominating the market in the case of the contactless payment trend as well. It was always development and the company was making recent attempts to increase Apple Pay initiatives, but it seems like the pandemic has increased this urge and also accelerated investment decision, which in normal conditions will be scattered in many years.
Seeing as NFC technology is an important advancement impacting diverse sectors such as mobile, banking or payment, retail, transport, and healthcare, this investment makes sense. This will allow for the use of creative, previously unimaginable smartphone services, also save money and improve customer satisfaction of service providers.
NFC’s Emerging Business Fields
NFC facilitates new services such as proximity marketing, the loyalty of point of sale, control of entrance, ticketing, door payment, and pay in-car services. Options are growing with the isolated lifestyle, impacting numerous actors, including mobile providers, banks, transportation firms, operators, and suppliers of devices and equipment.