- Block shares fell more than 3% Thursday after Bloomberg reported Apple is preparing a mobile-payments service for small businesses.
- The upcoming feature would let small businesses take payments on their iPhones without extra hardware.
- The new service could impact payments providers that use iPhones like Block’s Square.
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The move could hurt mobile payments companies like Block’s Square that rely on Apple’s iPhones to facilitate sales.
Shares fell 3.6% to $106.96 during premarket trade. The stock so far this year has dropped by 31% alongside a broader rout in technology stocks that’s pulled the Nasdaq Composite into a correction.
Since around 2020, Apple has been working on the new feature, which will turn the iPhone into a payment terminal, letting users accept payments by tapping a credit card or another iPhone onto the back of their device, sources told Bloomberg.
The report said if Apple lets any app use its new technology, then Block’s Square business can keep accepting payments through Apple devices without needing to provide its own hardware.
But if Apple requires businesses to use
or its own system of payment processing, then that could compete directly with Square.
Apple may begin rolling out the feature through a software update in the coming months, Bloomberg reported.