Mobeewave’s technology allows buyers to use their credit card or smartphone on another phone to process a payment. In addition, the system works with an app and does not require any hardware other than a near field communication (NFC) chip. IPhones have included NFC chips since 2014.
The startup had dozens of employees, whom Apple reportedly kept. They continue to work in Montreal.
“Apple buys from small tech companies every now and then and we usually don’t discuss our goal or our plans,” an Apple spokesperson said. Bloomberg.
However, Apple often buys startups to integrate their technology into the functionality of its products. Since the California-based company launched Apple Pay in 2014 and launched its own credit card last year, the technology that allows iPhones to accept payments without additional hardware makes a lot of sense for the company.
In addition, the acquisition would put Apple in more direct competition with Square, which sells payment hardware and software for use with smartphones and tablets.
It should be noted that Samsung has previously partnered with Mobeewave to bring the technology to its Galaxy phones. On top of that, the venture capital arm of the South Korean firm has invested in the startup, which has raised more than US $ 20 million, according to PitchBook.
The Mobeewave deal is one of Apple’s many acquisitions this year. The California-based company also bought Dark Sky and NextVR, among others.
Image Credit: Mobeewave