What happened
In a meeting of two giant minds in the fintech and big tech industries, Block (SQ -1.18%) and Apple (AAPL 5.98%) are collaborating on a new offering. Thursday morning, Block announced the initiative, and bullish investors bid the stock up by almost 7% in reaction.
So what
Block and Apple are working together to bring the latter's Tap to Pay functionality, currently an option on its popular iDevices, to Block's Point of Sale app. Once implemented, this will allow holders of those devices to use them for contactless payments on Block terminals housing the app.
Image source: Getty Images.
Block did not provide the financial terms of this collaboration with Apple. It did say in its announcement that
This builds on Square's powerful software which helps sellers drive more business with marketing and loyalty programs; easily track and manage product inventory; and even simplify their cash flow with business banking tools that provide them instant access to their Square sales.
According to data from several research companies, Apple's iPhone is currently the most popular smartphone in the U.S., Block's core market. Counterpoint Research, for example, has it that the tech giant's familiar device comprised more than half of all smartphone shipments in the U.S. last year.
Now what
Block is always looking to broaden its payment ecosystem, and make it as convenient and accessible as possible for customers to transact with Block clients. It's particularly encouraging that Block is currently trying to do so with iPhone owners as they now comprise a big chunk of the American economy.
