February 9, 2022: On Tuesday, Apple announced that it would release a new Tap to Pay feature for the iPhone allowing people to buy goods from merchants in the U.S. by tapping their phones together. It works with contactless credit cards.

The announcement effectively turns iPhones into point-of-sale terminals without additional hardware. Block, whose first significant product was a smartphone dongle that allowed merchants to accept credit card payments, decreased 2% in early trading Tuesday.

Apple said that Stripe would be the first payment operator to offer the service and that it would be integrated into Shopify’s point-of-sale product. Shopify stock was flat on Tuesday.

Currently limited to the U.S., the service will use the iPhone’s NFC chip and accept Apple Pay, Visa, American Express, Mastercard, and Discover.

Tap to Pay is the Big Tech company’s latest financial services innovation. It currently operates Apple Pay, a contactless payment service, Apple Pay Cash, a peer-to-peer payments service, and Apple Card, an iPhone app-oriented credit card used in conjunction with Goldman Sachs.

Apple reported $68.43 billion in services revenue for the year ended in September; Apple Pay and the Apple Card are minor components of that segment.

Apple said the feature would be accessed through third-party apps, released later this year. Other payment companies and app developers will develop apps that access the Tap to Pay component in a future version of iOS, the iPhone operating system.