Apple buys startup that turns smartphones into mobile payments terminals

Apple recently purchased Mobeewave, a payments technology startup that developed a method by which smartphones like iPhone can be used as mobile payments terminals.

Citing sources familiar with the matter, Bloomberg reports Apple paid approximately $100 million for Montreal-based Mobeewave and its "dozens" of employees. The team has been retained and continues to work out of its headquarters.

Apple confirmed the purchase with a boilerplate statement, saying, "Apple buys smaller technology companies from time to time and we generally do not discuss our purpose or plans."

Mobeewave's technology employs NFC communications to enable users to conduct payments by tapping a compatible credit card on a smartphone. Consumers can also trigger transactions by bringing two smartphones within close proximity of each other, the report said.

Details of the payments tech were left unreported, but Mobeewave's solution appears to focus on the secure transfer of credentials over existing hardware protocols. A number of point of sale terminals support tap-to-pay credit card transactions, though the tech has yet to make the leap to iPhone. Apple first integrated NFC capabilities into its flagship smartphone with iPhone 6 and 6s in 2014.

If adopted, the payments tech would allow Apple to compete with the likes of Square. Unlike existing solutions that require extra hardware like first-party dongles or NFC reader attachments, however, Mobeewave's integrated system is much more appealing and could be a game changer for small businesses.

19 Comments

rob53 3299 comments · 13 Years

About 4 years ago

So waitstaff can take payment at the table with a small iPhone instead of a bulky mobile POS device.

Beats 3073 comments · 4 Years

The retail POS terminal industry has been wide open for Apple since the invention of iPad. Not sure why Apple has been dragging their feet.

Small businesses choose to use iPads(with 3rd party software) but they aren't supported natively. Imagine if they were?

seanismorris 1624 comments · 8 Years

Beats said:

The retail POS terminal industry has been wide open for Apple since the invention of iPad. Not sure why Apple has been dragging their feet.

Small businesses choose to use iPads(with 3rd party software) but they aren't supported natively. Imagine if they were?

Apple figured if they’re going to be investigated for antitrust, might as well go whole hog.

seanismorris said:

Beats said:

The retail POS terminal industry has been wide open for Apple since the invention of iPad. Not sure why Apple has been dragging their feet.

Small businesses choose to use iPads(with 3rd party software) but they aren't supported natively. Imagine if they were?

Apple figured if they’re going to be investigated for antitrust, might as well go whole hog.

Forgot to add. Apple has also shi**ed on companies who used to use iPod touches to take people's orders. Hopefully Apple supports them again but unfortunately there has been nothing as cheap or small as the iPod since.

Rayz2016 6957 comments · 8 Years

If adopted, the payments tech would allow Apple to compete with the likes of Square. Unlike existing solutions that require extra hardware like first-party dongles or NFC reader attachments, however, Mobeewave's integrated system is much more appealing and could be a game changer for small businesses.

Intriguing.

My first guess is that Apple will only use the system for the retail stores, which rely on a clunky iPhone terminal add-on to process credit cards (do Apple store even take cash? Not that it matters; after this year, no one will).

I think they will also add a framework so that services like Square can process payments on-device, without the need for extra hardware.

But I'll tell you where this will really make a huge difference: craft fairs, outdoor gigs … We went for a walk around the grounds of stately home the other day (no one is allowed inside at the moment). Now that it's card payments only, all the ice cream vendors have terminals to take the money. So from the gift shop (closed) you can see all these vendors running about waving payment terminals in the air, trying to get a connection. Turned out that the best place to get a signal was by the entrance to the ladies toilets … that was a very weird queue: women looking suspiciously at men, and men shouting: "I'm just buying ice cream!"

Anyway, yes, processing payments on device, without needing to connect to a network would be a game changer for outdoor venues.