MONTREAL — Apple sent a shockwave through the payments industry in February when it announced an upcoming feature for iPhones: devices would soon be able to accept credit and debit payments with just a tap of the card.

The announcement, while short on details, raised questions about its impact on companies that make specialized payments hardware. It also hurt the share prices of firms like Block (formerly Square), whose stock fell as much as 3.2 per cent the day of Apple’s announcement. Apple’s move could transform the point-of-sale market, which includes Montreal-based Lightspeed Commerce, whose business relies on selling hardware terminals for in-person retail, as well as Moneris, which is owned jointly by BMO and RBC.

In an April interview, Jona Georgiou, Lightspeed’s general manager of payments and financial services, told The Logic that the company doesn’t expect Apple’s offering will replace its own product. “This just gives a few more options to our merchants,” Georgiou said. “They can just ignite payments much faster. They have a phone, they can download the app and it’s done.”

Lightspeed merchants may opt to use iPhones as terminals in addition to the Lightspeed POS, something that it’s preparing for by partnering with Dutch payment company Adyen to develop a tap-to-pay solution for U.S. customers. Apple initially said it was working with Stripe but would add more payment platforms and apps later this year. 

Georgiou added: “We are a complete commerce solution, so it’s the integrated experience: having your POS connected with your payments, the reconciliation, the operations piece, transparent pricing, reporting. All of that is the value-add of a commerce solution, which wouldn’t go away.” With respect to small merchants that don’t need all those perks, she said: “That’s not the industry that we thrive in.” Lightspeed’s product is geared toward more complex businesses, she said.

The fintech has been diversifying its business to be less reliant on its POS terminal. It has emphasized to investors its “omnichannel” offerings beyond physical retail, and the company spent roughly US$500 million last year to acquire e-commerce platform Ecwid.

Meanwhile, questions remain about Apple’s new product. It’s unclear when the tap-to-pay option will be available to iPhone users in Canada and other countries, if at all. Some core fintech products like its Apple Card have long been restricted to U.S. customers. The iPhone feature also might not be able to process the full range of payment types that existing POS hardware can, Georgiou said.