Apple is working on a new service that transforms your iPhone into a payment terminal. According to a Bloomberg report published Thursday, this will enable businesses to accept payments directly from an iPhone without the need for additional hardware.

Essentially, the feature converts every iPhone into a payment portal. This could reduce or eliminate the need for devices from Square and Toast.

According to Bloomberg's Mark Gurman, Apple bought Canadian company Mobeewave for $100 million in 2020.

Mobeewave developed a system that enabled one-tap payment on smartphones. Mobeewave's technology completes transactions via near-field communication (NFC), which is built into every modern iPhone.

"This enables Apple to avoid developing new hardware because a sizable portion of the market already owns it (iPhones)," Edward Jones analyst Logan Purk explained.

The user simply enters the amount they wish to charge, and their customer taps their credit card onto the device's back.

Apple declined Bloomberg's request for comment, so it's unclear whether the built-in iPhone feature will function similarly.

Additionally, Bloomberg's sources were unable to confirm whether the latest feature would be integrated into Apple Pay.

However, since Apple acquired Mobeewave, the team developing the feature has reportedly been collaborating with Apple's payments division.

Mobeewave was previously teaming up with Samsung to transform its phones into contactless payment portals.

They tested the feature in Canada and even expanded the country's availability of the company's point-of-sale service, dubbed Samsung POS.

It is also unknown at this point whether Apple will roll out the service in conjunction with an existing payment network.

One report has it that Apple is preparing to launch the feature "in the coming months."

Apple released iOS 15.3, its latest software update for iPhones and iPads, on Jan. 26. The update addresses a number of security flaws, including a Safari bug that allows websites you visit to view your browsing history and other personal information.

Apple is rumored to host a virtual event in March or April.

Bloomberg recently reported that Apple will host an event at which it will unveil a new iPhone SE, iPad Air, and a Mac powered by Apple's custom silicon.

While the tech giant has the world's attention, it may also reveal the new payment service officially.

Apple is perfectly content to announce new products via press releases if there aren't enough to warrant a full-fledged event.

Apple would have one more reason to go all out for a spring event with the release of iOS 15.4.