Apple introduced a new feature for iPhone called Tap to Pay. The company’s shares immediately went up. Whether this trend will continue for a long time, the BCS was trying to figure out.
Tap to Pay: What it is
It’s an iPhone feature that allows sellers of goods to take payments in Apple Pay without using additional hardware. To say an exaggeration, in stores you have probably seen a payment terminal where a card is inserted or a phone or card is attached. The Apple smartphone can now do the same, but without additional equipment.
How does novation work?
With the help of NFS (contactless payments) technology, payment is made, on the basis of which Tap to Pay will work, but only for receiving payments. It will work with Visa, Mastercard, Discover and American Express cards, as well as with Apple Pay itself.
What is this Apple for?
The company has been working on the feature since 2020, for this Apple bought the Canadian startup Mobeewave for $100 million, which is engaged in the implementation of such a project.
The changes expand Apple’s fintech service. For example, in 2019, the company launched its own credit card from Goldman Sachs. It is believed that the company is currently working on a buy now pay later service. For Apple, this is an important direction for the growth of the business in general and the expansion of the capabilities of the ecosystem of iOS devices.
Who is the client?
Apple will partner with payment systems like Stripe and e-commerce platforms like Shopify to make the service widely available. In the spring of 2022, they will be the first to offer the service to their business clients. Apple noted that, in addition to Stripe, other payment players will join already this year.
Are there competitors?
Yes, and this is Block (formerly Square), which has special hardware for similar operations through a smartphone. Apple’s feature will be a direct competitor and could potentially reduce interest in Block’s products if successful and effective. Block quotes lost 1.2% yesterday.
However, Barclays analyst Ramsey El-Assal wrote on Tuesday that Apple’s offer appears “more complementary than competitive,” as the company mentioned it plans to work with existing payment platforms.
The effect on the company’s stock
After the recent report, Apple shares rallied until they hit the $176 resistance before consolidating. On the morning of February 9, futures on American indices are rising, and therefore the resistance test in Apple shares may continue.
Breaking the level opens the way to the range of $180−183, where there are historical highs. The daily RSI does not prevent such a rise.
The bounce from $176 down has maintained a short-term sideways consolidation. A negative signal would be a descent below $168−164, where the EMA50 is nearby. This scenario opens the way for a retest of the recent lows of $160-154.9.
As long as the stock is above the 200 EMA and the $152-148 range, a renewal of all-time highs remains an urgent objective in the medium term.
