The feature is called Tap to Pay. It allows merchants to use their iPhones as point-of-sale terminals. The service supports Apple Pay, contactless credit and debit cards, and other digital wallets. To complete a payment, the customer simply needs to bring their device or bank card close to the iPhone.
The new feature works on iPhone XS or later models. To set it up, users need to download a specific app. Currently, Tap to Pay will work in the UK with payment platforms Revolut and Tyl by Natwest. Support for Adyen, Dojo, myPOS, Stripe, SumUp, Viva Wallet, Worldline, and Zettle by PayPal will be added later.
By the way, the UK is the fourth region where Tap to Pay has been launched. The feature was previously introduced in the US, Australia, and Taiwan.