It works like this: a vendor with the app installed can turn their near-field communication-equipped (NFC) smartphone or tablet into a contactless payment terminal.
The Cupertino, California-based innovation giant paid about $100 million for the startup, one of the individuals said. Apple will be retaining Mobeewave's existing employees.
Apple Inc. has acquired Mobeewave Inc., a startup with innovation that could change iPhones into mobile payment terminals, as per individuals acquainted with the issue.
Apple confirmed the acquisition with its typical statement: "Apple buys smaller technology companies from time to time and we generally do not discuss our objective or plans". The tech giant also bought Voysis, Xnor.ai, and Inductiv to enhance Apple's artificial intelligence, including Siri, as well as enterprise device management company Fleetsmith. For instance, Apple launched Apple Pay with the iPhone back in 2014. Apple added Apple Pay to the iPhone in 2014, allowing users to pay for physical goods with a tap in retail stores. But the iPhone company has been moving more in the financial services direction in recent years, as evidenced by the introduction of the Apple Card (among other things).
If and when Apple launches this product, then it would be competing against major payments companies like Jack Dorsey's Square Inc., a provider of payment hardware and software for mobile devices. Square also offers a lending service - a key area of Fintech.
Samsung Electronics Co. collaborated with Mobeewave a year ago to permit its telephones to utilize the innovation. Samsung's venture arm is also an investor in the startup, which has raised more than $20 million, according to PitchBook. It also purchased virtual reality startup NextVR, which is known for its partnerships with sports entities, such as the National Basketball Association. The card works in tandem with the Apple Wallet app which offers data and transactions in one place for the user. Apple's stocks surged on Friday, and managed to significantly outperform the larger market.