Accelerating payment software: from digital euro to Tap to Pay

Blog  — Tue 22 Aug 2023

Banks have naturally been using computers for internal processes for decades. Even the familiar and nearly disappearing ATM has an operating system. Online banking has also become an indispensable aspect in our financial landscape, both on the web and in apps.

However, software continues to propel the world of payments forward. Europe is working on a digital euro for everyone, while Apple's recent service, Tap to Pay, seems to be primarily targeting merchants.

The Birth of the Digital Euro?

The central European bank has launched a website for the digital euro. This digital currency concept is intended as an electronic version of physical money, alongside traditional banknotes and coins. Its aim is to provide Europeans with a contemporary alternative for transactions. The research phase is expected to conclude by October 2023, after which the green light may be given for the introduction of the digital euro.

The digital euro promises to be a universally accepted digital payment method, available for consumers in physical stores, online shops, and even directly from person to person, as stated by the central European bank. And all of this without transaction fees.

Tap to Pay: Putting a Payment Device in Everyone's Pocket

Apple's Tap to Pay solution, while not free, also represents an innovative new software possibility. With this service, entrepreneurs can transform their iPhones into wireless payment devices. Various common payment methods are supported, ranging from traditional debit cards to credit cards and even NFC-compatible Android smartphones. As long as contactless payments are supported, it seems to be compatible with Tap to Pay.

For the end user, this service is free, as announced by Apple. However, sellers are expected to pay a small fee to Apple. The amount of this fee is presumably dependent on the total number of transactions processed by the seller.

Software is Changing Payments and Getting Paid

The rise of new software solutions leads to fresh possibilities. The primary goals in this regard are user-friendliness and speed, which were emphasized in both of the above cases. If each bill in the future also offers an API by default, consumers and entrepreneurs can manage all financial matters fully, digitally, and even automatically. Who knows, perhaps as early as next year?