Apple buys startup that turns smartphones into mobile payments terminals

Apple iPhone SE

Apple has reportedly acquired Mobeewave Inc., a startup with technology that could transform iPhones into mobile payment terminals.

While Apple obviously hasn't said a thing about this acquisition, Bloomberg's sources suggest the Cupertino giant paid almost $100Mn for the acquisition. The company will continue to operate out of its Montreal offices, according to sources.

"Apple buys smaller technology companies from time to time and we generally do not discuss our objective or plans", an Apple spokesman said.

Apple Pay will benefit from the inclusion of this feature. Apple added Apple Pay to the iPhone in 2014, permitting clients to pay for physical products with a tap in retail locations. Last year, it launched its own credit card, the Apple Card.

This would put Apple into more direct competition with Square Inc., a leading provider of payment hardware and software for smartphones and tablets. Square also offers a lending service - a key area of Fintech. As it already has insight into the sales of a merchant, qualifying a lender is fairly simple and loan repayments are automated. Users don't have to attach any accessory to their phones - all they need to do is input the transaction amount in the app and then tap a card or another smartphone onto the back of their device. Samsung also partnered with the startup to let its own flagship phones use this tech. Samsung's endeavor arm is additionally a financial specialist in the startup, which has raised more than $20 million, as per PitchBook. It also purchased virtual reality startup NextVR, which is known for its partnerships with sports entities, such as the National Basketball Association. Other purchases include Voysis, Xnor.ai and Inductiv to improve Siri and artificial intelligence, and Fleetsmith for enterprise device management.

Apple recently reported its third quarter results for the year. Apple's stocks surged on Friday, and managed to significantly outperform the larger market.

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