In October 2014, Apple announced Apple Pay – a way for customers to pay at stores using their iPhone. Upon its initial release, many larger corporations such as McDonald’s, Nike, Panera Bread, Walgreens and Whole Foods were ready to support Apple Pay, but over the past several months, many small businesses have started to adopt Apple Pay as well. Apple isn’t the first company to enter the mobile payment market, but they are one of the largest.
As a small business owner, you may be wondering how offering Apple Pay could benefit your business and customers. You’re also probably curious as to whether Apple Pay will really take off and whether it’s worth investing in. As of January 2015, over 750 banks and credit unions have signed on to accept Apple Pay, and there were over 1 million card activations during the first 72 hours that Apple Pay was available.
How does Apple Pay work?
For customers, paying in stores is easy with Apple Pay. To use Apple Pay, customers first add their payment information to Passbook on their iPhone. At checkout, they select their preferred payment method from their electronic wallet. Then, customers hold up their iPhone near the mobile payment reader and verify the purchase with Touch ID. Apple Pay is currently available on the iPhone 6, Apple Watch, iPad Air 2 and iPad Mini 3.
If you’re considering offering Apple Pay for your small business, here are four ways that your business and customers can benefit:
Increased security
Apple Pay features multiple levels of security to ensure that your customers’ credit card information is transferred safely between you and the credit card company. Apple Pay also utilizes encrypted near field communication (NFC) technology to connect with your cash register, and it generates a unique security code for every transaction. You’ll never have to worry about compromising sensitive customer information because you’ll never have it in the first place.
More opportunities to compete
Although it’s still too early to say whether Apple Pay will revolutionize the way businesses accept credit card payments, we do know that Apple is definitely generating demand. Many larger corporations are already starting to accept Apple Pay, but small businesses are able to get in on the action too. Small businesses actually have an easier time adopting the new technology, and they can implement it much quicker than larger businesses can. It’s more important than ever to offer your customers multiple payment options, and Apple Pay is another great option to add to your list.
Easier payments for customers and business owners
People are always looking for things to make their lives easier, and Apple Pay does that. Apple Pay makes it easy for customers to store payment information in their phones and choose which payment method they want to use at checkout. Customers are able to make transactions using their iPhone or Apple Watch – no traditional wallet required. As a small business owner, you benefit from the easier payment model of Apple Pay as well. Now, you can control all of your payments from one screen, saving time and money while improving cash flow.
