Apple announcedIt will launch a Tap to Pay feature on iPhone Tuesday, which allows users to tap their smartphones together to purchase goods from merchants.

This announcement transforms iPhones into terminals for point-of sale without the need to purchase additional hardware. Square’s first product, which was a dongle for smartphones that enabled merchants to take credit cards payments, saw a trading drop of just over 1 percent on Tuesday.

AppleThe service would be offered by Stripe as the first payment processor to do so, with Shopify integrating it into its point-of-sale software. On Tuesday, Shopify stocks were flat.

This service will accept Apple Pay and the iPhone’s NFC chips. The service will be able to accept Visa and Mastercard as well as American Express, Mastercards, and Discover.

Apple has made the announcement as a recent move into the financial service industry. Apple Pay is a contactless payment system. Apple Card, an iPhone-oriented credit card, was launched in partnership with Goldman Sachs.

Apple posted $68.43 Billion in services revenue in its September fiscal 2021. Apple Pay, and the Apple Card make up its services segment. 

Apple stated that the app would soon be available and would also become accessible to other app developers and payment companies in the next version of iOS.