Contactless iPhone payments could be enabled in a future iOS update, Mark Gurman wrote on Wednesday. It means that small business could accept credit card payments directly with an iPhone, without needing a terminal such as Square. Jeff Butts has more information here.
In order to accept payments on an iPhone today, merchants need to use payment terminals that plug in or communicate with the phone via Bluetooth. The upcoming feature will instead turn the iPhone into a payment terminal, letting users such as food trucks and hair stylists accept payments with the tap of a credit card or another iPhone onto the back of their device.