By now, you may have heard of a payment option called Apply Pay, which officially rolled out in 2014, but has lately gained a lot of traction. Apple Pay allows your customers a safe, easy, and private way to pay for goods and services in stores, in mobile apps, online, and even in certain web chats. It only makes sense that we use our cellphones as mobile wallets since we handle much of our daily lives on them. Simply load your credit or debit card information into the wallet app, wait for your card issuer to verify your card, and you are ready to start using Apple Pay. To pay for an item, a customer simply needs to hold their iPhone close to the payment terminal, rest their finger on the Touch ID until the checkmark appears. Easy, right?
How Does Apply Pay Work for the Merchant?
If your business already accepts credit and debit cards, chances are you are already set up to accept Apple Pay. What you need is a card reader that’s equipped with NFC (near field communication) technology. If you accept payments online, you can accept Apply Pay through your app or website. You just need your web developer to use a checkout and payment form, or an API that supports Web Apple Pay.
Apple Pay uses near-field communication (NFC) technology that allows customers to make secure, contactless credit or debit card payments using an NFC compatible iPhone, Apple Watch, or iPad.
When they purchase a good or service from you, during the checkout process Apple Pay will tokenize the credit or debit card information from Apple and use that token for the transaction. This means your customer doesn’t have to enter their credit card information, because Apple Pay will pass the tokenized card information to credit card processing service.
Why Should My Business Accept Apply Pay?
Apple Pay transactions are much quicker than traditional card transactions. The average transaction time for a chip card from insertion to approval is about 16 seconds. While some companies are working on making the chip card speed faster, it’s still no comparison to the 3 or 4 seconds it takes to complete a contactless payment with an iPhone and Apple Pay.
Apple Pay’s popularity is growing. As we become an even more cashless society, it’s not surprising that apps like Apple Pay are growing in usage. Even if you don’t accept Apply Pay today, it may be a good idea to look into for the near future. As more and more people shift to using mobile wallets, it could eventually affect your bottom line if you don’t accept their preferred method of payment.
Litchfield Branch Manager, Assistant Vice President
NMLS MLO ID: 698742