A step-by-step guide for 2024

As mobile payments continue to grow, Apple Pay is critical for your small business. Customers value the speed, security and convenience of paying with their iPhones, Apple Watches or other Apple devices.

These benefits also apply to small businesses. Businesses that accept Apple Pay can streamline the checkout process and reduce wait times. This allows you to significantly increase your sales and gain more satisfied customers in the long term.

Let’s walk through how Apple Pay can bring your small business up to speed.

What is Apple Pay?

Apple Pay is a digital wallet and mobile payment platform developed by the world-famous Apple Incorporated. It allows users to make payments in person, in iOS apps and over the web. It is safer and more convenient than traditional payment methods such as cash and physical credit cards.

The app is considered a very flexible payment option. Because a person can link different payment methods to their app. For example, the platform houses several credit cards and associated reward points under one roof. However, as a merchant, you will still receive a single, traditional payment regardless of how a customer configures Apple Pay.

Accepting payments is a breeze. Customers place their iPhone or Apple Watch near a contactless payment terminal or other Apple device to complete a transaction. No swiping, pasting or fumbling with zip codes required.

Why your business should accept Apple Pay

There are actually no disadvantages to accepting Apple Pay. In fact, most companies already accept these payments. Here’s why:

Fast comfort

Apple Pay transactions are fast, allowing customers to make payments with just a tap. This seamless process shortens checkout times and improves the overall shopping experience. This is a critical improvement in industries such as retail, food service and hospitality, where quick service and impulse purchases are the norm.

Increased security

Apple Pay uses tokenization and encryption to secure transactions. In addition, Apple is committed to minimizing storage of customer spending data. Additionally, biometric authentication like Face ID prevents thieves from using someone else’s account. These security measures give customers and companies a feeling of security.

Contactless payment

Apple Pay offers a hygienic, touchless option. Customers don’t have to use a pen to sign. You also don’t have to smash germ-laden keyboards. This eye for cleanliness is a blessing in the post-COVID-19 world.

Competitive advantage

Apple markets the platform as a widely accepted payment system. This frictionless idea makes people want to use the app for every transaction. By accepting Apple Pay, you give people what they want when shopping. This open-mindedness can be a competitive advantage, especially at venues with close physical proximity like swap meets and food truck meetups.

Step-by-step: How to accept Apple Pay

Accepting Apple Pay in your small business is easier than you might think. Here is a general overview of how to get started.

Upgrade your payment terminal

Apple Pay support requires a payment terminal with Near Field Communication (NFC) functionality. This technology is the be-all and end-all of contactless transactions. In this case, Apple devices can communicate with your devices wirelessly.

Most newer terminals from Square, PayPal, Clover and others have built-in NFC functionality. However, if you are using older devices, you will need to upgrade. Modern options cost around $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 found the right hardware, you’ll need to check whether your POS system is set up for contactless payments like Apple Pay. The process varies depending on the provider. Usually it’s as simple as enabling NFC functionality in your device’s settings.

Related: Best Cloud POS Systems

Test the Apple Pay setup

Before accepting Apple Pay from customers, it’s important to test the system to make sure everything is working properly.

Make some test transactions using an iPhone or Apple Watch. Bounce your Apple device against the terminal to check if it works. You can charge a nominal amount – just a few cents – and issue a refund at any time afterward.

Train employees

If necessary, train your employees on everything related to Apple Pay. Remember that convenience and speed make the platform attractive. And the seamless ability to collect your customers’ cash is a huge advantage for you. So you need well-informed employees to solve problems quickly and ensure everything runs 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 provides free stickers and digital materials to help spread the message at your point of sale. You can also mention it on your website, signage, and advertising.

FAQs

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 charge any 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, you may incur upfront hardware costs.

Is Apple Pay safe?

Yes, Apple Pay is extremely secure. It uses encryption and tokenization to protect customers’ payment information. Instead of sharing actual credit or debit card information, 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 to ensure 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 have this feature. If this is not the case for you, you will need to purchase a compatible terminal.

How do I know if my terminal accepts Apple Pay?

If your payment terminal displays the contactless payment icon (four curved lines), it supports NFC technology and can accept Apple Pay. If you are unsure, 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 your customers with a seamless experience.

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 staff retail expert Meaghan Brophy.