Shares of Block (SQ) jumped over 6.7% on June 2 after the fintech company announced that it is working with Apple (AAPL) to bring “Tap to Pay” on the iPhone within the Square point-of-sale app.
Based in California, Block provides credit card payment processing solutions with point-of-sale software and hardware that help sellers with payment and point-of-sale solutions.
Further Details of the Offing
The new “Tap to Pay on iPhone” offering is Apple’s contactless payment acceptance capability, which allows sellers of all sizes to seamlessly accept in-person contactless payments using an iPhone and Square’s POS app.
Furthermore, no additional hardware will be required and the offering integrates well with Square’s broader ecosystem of tools.
Ahead of the official launch of the service later this year, Square is allowing selected sellers to begin testing the new technology as a part of an early access program.
In fact, Apple rolled out its latest “Tap to Pay” offering last week on the iPhone at some of its retail stores.
Management Weighs In
Head of Financial Services at Square, David Talach, commented, “Bringing Tap to Pay on iPhone into the Square ecosystem ensures that new sellers will have another free option to get up and running, while providing businesses of any complexity with more flexibility to adapt their commerce experiences to evolving consumer preferences and changing industry trends.”
Wall Street’s Take
On June 1, Piper Sandler analyst Christopher Donat reiterated a Hold rating on the stock.
Overall, the stock has a Strong Buy consensus rating based on 28 Buys and six Holds. The average Block stock forecast of $144.48 implies 70% upside potential from current levels.
TipRanks’ Smart Score
SQ scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Conclusion
The in-person payment landscape has advanced over the years, with more and more buyers opting for more secure and contactless payments.
“Tap to Pay” on iPhone will add a great add-on feature for sellers allowing contactless payments with no additional hardware, and integrates well with Square’s current ecosystem.
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