As mobile payments continue to grow, Apple Pay is a game-changer for your small business. Customers appreciate the speed, security and convenience of paying with their iPhones, Apple Watches or other Apple devices.
These benefits also extend to small businesses. Entities that accept Apple Pay can streamline the payment process and reduce wait times. As a result, you will be able to significantly increase revenue and create happier customers in the long term.
Let's see how Apple Pay can improve your small business.
What is Apple Pay?
Apple Pay is a digital wallet and mobile payment platform created by the world famous Apple Incorporated. It allows users to make payments in person, in iOS apps, and over the internet. It is safer and more convenient than traditional payment methods such as cash and physical credit cards.
The application is considered a very flexible payment method. This is because a person can link multiple payment methods to their app. For example, multiple credit cards and associated rewards points are under one roof on the platform. However, you will still receive a single, traditional payment as a merchant, regardless of how the customer sets up Apple Pay.
Accepting payment is very simple. Customers place their iPhone or Apple Watch near a contactless payment terminal or other Apple device to complete a transaction. No need to swipe, insert or manipulate zip codes.
Why your company should accept Apple Pay
There are really no downsides to accepting Apple Pay. In fact, most companies already accept these payments. Here's why:
Quick convenience
Apple Pay transactions are fast, allowing customers to make payments with a quick tap. This seamless flow reduces checkout times and improves the overall shopping experience. It's a crucial improvement in industries like retail, food service and hospitality, where quick service and impulse purchases are the norm.
Improved security
Apple Pay uses tokenization and encryption to protect transactions. Additionally, Apple is committed to minimizing the amount of data it retains about customer spending. What's more, biometric authentication like Face ID prevents thieves from using someone else's account. These security measures give a feeling of security to customers and companies.
Contactless payment
Apple Pay offers a hygienic and contactless option. Customers don't have to pick up a stylus to sign. They also don't have to destroy germ-laden keyboards. This eye for cleanliness is a blessing in the post-COVID-19 world.
Competitive advantage
Apple markets the platform as a universally accepted payment system. This frictionless idea means that people aspire to use the app for every transaction. By accepting Apple Pay, you're giving people what they want when it comes to their purchases. This open-mindedness can be a competitive advantage, especially in tight venues like swap meets and food truck meet-ups.
Step by step: How to accept Apple Pay
Accepting Apple Pay at your small business is easier than you think. Here is the general outline of how to get started.
Upgrade your payment terminal
Apple Pay support requires a payment terminal with Near Field Communication (NFC) capability. This technology is the bread and butter of contactless transactions. In this case, it allows Apple devices to communicate wirelessly with your computer.
Most of the newer terminals from Square, PayPal, Clover, and others come with built-in NFC functionality. But if you use older equipment, you will need to upgrade it. Modern options cost about $300 or less up front. Alternatively, you can use an iPhone to collect payments.
Related: How does Tap to Pay work?
Enable contactless payments
Once you've chosen the right hardware, you'll need to check that your POS system is set up for contactless payments like Apple Pay. The process varies depending on the provider. It's usually as simple as turning on NFC functionality in your device's settings.
Related: Best Cloud POS Systems
Try setting up Apple Pay
Before you start accepting Apple Pay from customers, it's essential to test the system to make sure everything is working correctly.
Make some test transactions using an iPhone or Apple Watch. Tap your Apple device against the terminal to confirm that it works. You can charge a nominal amount (just a few cents) and always issue a refund afterwards.
Train employees
If applicable, train your workforce on everything related to Apple Pay. Remember that convenience and speed make the platform attractive. And an easy way to collect cash from customers is a major benefit for you. Therefore, you will need a knowledgeable staff to quickly resolve issues and keep everything running smoothly.
Promote Apple Pay
Once you're ready to accept Apple Pay, it's time to let your customers know. The Silicon Valley-based company offers free stickers and digital materials to spread the word at your point of sale. You can also mention it on your website, posters and advertisements.
Frequently asked questions
How much does it cost to accept Apple Pay?
The cost of accepting Apple Pay depends on your payment processor. The app typically doesn't incur additional fees beyond standard credit card processing fees, typically around 2 to 3% of each transaction. If you need to upgrade your payment terminal to accept NFC payments, there may be an initial hardware cost.
Is Apple Pay secure?
Yes, Apple Pay is very secure. Uses encryption and tokenization to protect customer payment information. Instead of sharing actual credit or debit card details, Apple Pay generates a unique token for each transaction, reducing the risk of fraud. Additionally, customers must authenticate payments using Face ID, Touch ID, or a passcode, ensuring only authorized users can make purchases.
Do I need a special terminal to accept Apple Pay?
Yes, you need a payment terminal that supports NFC technology to accept Apple Pay. Most modern POS systems and even iPhones include this feature, but you'll need to purchase a compatible terminal if yours doesn't.
How do I know if my terminal accepts Apple Pay?
If your payment terminal has the contactless payment symbol (four curved lines), it supports NFC technology and can accept Apple Pay. If you are unsure, please contact your payment processor to confirm.
Can I accept Apple Pay for online sales?
Yes, Apple Pay can also be used for online transactions. If you have an e-commerce website, you can integrate Apple Pay as a payment option at checkout, providing a seamless experience for your customers.
What types of businesses can accept Apple Pay?
Any business that accepts card payments and has an NFC-enabled payment terminal or a compatible iPhone can accept Apple Pay.
This article was reviewed by our retail expert, Meaghan Brophy.
