Apple Launches Contactless Payments through Tap-to-Pay iOS App
On February 8th, Apple announced a Tap-to-Pay iOS application for contactless payments. An iPhone or Apple Watch user simply has to tap on their phone for receiving or sending payments.
Stripe is one of the first platforms to integrate this iOS feature in their payments. So a merchant can use it for accepting transactions from credit and debit cards.
It’s great news for Shopify store owners because it’s available for Shopify point-of-sale too.
So Apple has empowered businesses to accept contactless payments from every payment gateway available.
Let’s see how businesses can make the most out of it!
How do Contactless Payments work?
Whenever customers reach checkout, they have to swipe the card in a physical store or enter payment information online. It can be unpleasant sometimes if a customer is in a hurry.
But they don’t have to do it now. For contactless payments, a user taps on the screen, and the transaction is complete instantly.
Nowadays, people want everything to be as effortless as possible. So thanks to Apple’s Tap-to-Pay application, the checkout processes will become even smoother.
And as 48% of global iPhone users already make payments through Apple Pay, the number of people using the application will highly increase.
How will “Apple’s Tap-to-Pay” help the businesses?
Businesses will find this new feature faster and more secure than traditional methods of accepting payments. Let’s find out what it has for the business owners.
i) The Checkout Process will be Faster
If a customer makes a transaction, they don’t have to put in their secure password or swipe a card to make a payment.
The people running an online store may know better than anyone else about how customers leave at the checkout sometimes because they have to fill up a lot of information. And then they may think about completing it later, ending up not coming back again.
But with this feature, a customer will bring out the phone in their pocket to complete a transaction quickly.
The cart abandonment rates will likely go down if a store owner has a Tap-to-Pay feature on their website.
ii) The Payments are Safe
Similar to Apple Pay, the protection of payments is top-notch. Apple has claimed that privacy protection is at the core of this application’s design and development. It uses the NFC technology and Secure Element to ensure that sensitive information is safe.
All the customer data is encrypted; no one knows who’s buying or sending the payments. No external hardware is required, meaning no physical element exists for making the payments.
iii) Increased Customer Satisfaction
Contactless payments are the future; customers don’t have to wait in queues or enter extra information to complete a purchase.
Transactions will take place in a matter of seconds by a simple tap on the iPhone device or Apple Watch. It will help increase customer satisfaction, saving customers time and energy.
Customers will keep getting back to your store if you implement the Apple Tap-to-Pay feature for them.
iv) No Additional Costs
With Apple’s Tap-to-Pay application, you are not paying any extra charges. You get the same fees received for accepting credit or debit card transactions.
So a business is not losing anything, and those who don’t take advantage of it are missing out on a large customer base.
Customers’ focus will shift towards contactless payments more than ever; a business should capitalize on this opportunity as soon as possible.
Also Read: Why Do Most Online Stores Fail?
Availability of Apple’s Tap-to-Pay
More than 90% of US retailers have Apple Pay as their payment method. And 48% of global iPhone users make payments with Apple Pay. Once the feature rolls out, everyone will be able to use it.
Also, it will be available for accepting credit or debit cards from many leading financial networks like Mastercard, Visa, Discover, and American Express.
And Stripe’s CBO has already made a statement about accepting contactless payments from iOS devices.
Apple’s app developer partners can use the Tap-to-Pay feature in their software development kits (SDKs) in the upcoming iOS software beta update.
It’s a great move by Apple to encourage contactless payments worldwide, especially after what we have gone through in the covid pandemic.
Indeed, it sets the opportunity for entrepreneurs to empower their businesses with the latest technology.
Furthermore, e-commerce businesses like Shopify stores can enjoy the best benefits through Apple’s tap-to-pay features.
As an e-commerce development company, we support this movement by Apple. And we will work around integrating the Tap-to-Pay contactless payments once the iOS beta program rolls out.
So we will be able to play our role in empowering the businesses through our e-commerce services.