Apple’s new iPhone Wallet feature will make it easier to pay while traveling
When Steve Jobs unveiled the first iPhone back in 2007, he pitched it as an all-in-one phone, web browser and music player.
Fast forward 15 years later, and the device's capabilities have grown exponentially — yet the tech giant isn't resting on its laurels.
Apple announced on Tuesday that it's bringing another new feature to the device that's poised to disrupt the mobile payment industry.
Dubbed "Tap to Pay on iPhone," the new capability will enable businesses in the U.S. to accept contactless payments using their mobile device via a partner-enabled iOS app.
Historically, businesses that wanted to accept payments on their iPhone would need to carry a dongle with a mobile card reader.
With this latest feature, no additional hardware will be required to accept credit cards — the device's near-field communication (NFC) chip will read the card details and securely transfer them directly to the payment processor. (Of course, businesses that want to continue accepting physical debit and credit cards that do not have contactless capabilities will still need to use a card reader.)
The tech giant is working with third-party payment processors, such as Stripe, to enable the new technology.
Related: A complete guide to contactless payments
When the feature becomes available later this year, all digital payment methods will be accepted, including Apple Pay, contactless credit and debit cards and other mobile wallets. You'll need an iPhone XS or later to make purchases using this new payment method.
It wasn't immediately clear how the new feature will work for refunds and for those merchants who have their own loyalty programs, but we've reached out for more details.
While it'll take some time to roll out nationwide, the ability to accept contactless payments on the fly will undoubtedly be beneficial to the travel industry.
Tour operators, third-party car services and others will soon be able to accept mobile payments without the need to purchase (or remember) a dongle.
It'll also be especially convenient for travelers, who'll no longer need to fumble around for physical cards. The new payment technology is more secure than using a physical card, which will help minimize fraud. And since Apple pay typically triggers category bonuses on credit cards (where applicable), it'll still allow you to bank those extra rewards toward your next trip.
Over the past year, Apple has greatly expanded the power of your iPhone's digital Wallet. For instance, the company joined forces with Hyatt to enable digital hotel keys in Wallet.
Apple also recently added digitally verifiable vaccination certificates in the Wallet app. And finally, support for TSA-approved mobile drivers licenses will roll out in the coming months — which is sure to be a game-changer for flyers nationwide.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.