Tap to Pay on iPhone accepts all forms of contactless payments - including Apple Pay, contactless credit and debit cards and other digital wallets - using only an iPhone and Westpac’s EftPOS Air iOS app, removing the need for additional hardware or payment terminals.

Under the licencing, Apple will take a slice of the merchant acquiring fee charged by Westpac for the service. Contractual terms have not been disclosed.

Westpac chief executive, consumer and business banking, Chris de Bruin says: “This new capability is particularly beneficial for any business that takes payments on the road or needs their staff to be more mobile on the shop floor. It’s a game changer for tradies, delivery drivers and businesses like hairdressers, mechanics or florists, and many more.”

While Westpac is the first Australian bank to implement the feature, SoftPOS vendor Tyro Payments has also unlocked the technology in time for its debut in Australia.

ANZ, through its partnership with Worldline, along with Stripe, Till Payments and Zeller, are also working with Apple to switch on the functionality in Australia in the coming months.

Australia is the third global market for Tap to Pay on iPhone, following earlier roll outs in the US and Taiwan.