Block Inc. will work with Apple Inc. to integrate Square payments with "Tap to Pay" feature on iPhones and launch it later this year, the fintech company said on Thursday.

The San Francisco-based company's shares rose 7% on the news.

The company said sellers would be able to accept in-person contactless payments with only their iPhone and a Square Point-of-Sales (POS) app, without the need for additional hardware.

Block said an Early Access Program will help sellers test the integration with iPhones this summer.

Apple had earlier said its "Tap to Pay" feature would launch later this year, with Stripe and Shopify Point being the first to offer the feature to business customers in the United States.

The iPhone-maker has been beefing up its fintech services. It launched its own credit card with Goldman Sachs in 2019 and is reportedly working on a "buy now, pay later" service.