Step-by-step guide for 2024

As mobile payments continue to evolve, Apple Pay is changing the game for your small business. Customers appreciate the speed, security and convenience of paying with an iPhone, Apple Watch or other Apple device.

These benefits also apply to small businesses. Entities that accept Apple Pay can streamline the checkout process and reduce wait times. As a result, you can significantly increase your revenue and gain happier customers in the long run.

Let’s take a look at 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 company Apple Incorporated. It allows users to make payments in person, on iOS apps and online. It is more secure and convenient than traditional payment methods such as cash and physical credit cards.

The app is considered a very flexible payment method. This is because a person can connect different payment methods to their app. For example, many credit cards and their associated rewards points are under one roof on the platform. However, as a merchant, you’ll still receive one traditional payment, 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 swiping, inserting or messing around with zip codes required.

Why your business 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 just one tap. This unimpeded flow reduces checkout times and improves the overall shopping experience. This is a key 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. Additionally, Apple is committed to minimizing the amount of data it stores about customer spending. Moreover, biometric authentication such as Face ID prevents thieves from using someone else’s account. These security measures provide peace of mind to customers and businesses.

Contactless payment

Apple Pay offers a hygienic and contactless option. Customers do not have to reach for a stylus to sign. They also do not have to destroy keyboards contaminated with germs. It is attention to cleanliness that is a boon in the post-COVID-19 world.

Competitive advantage

Apple markets this platform as a widely accepted payment system. This frictionless idea means people want to use the app for every transaction. By accepting Apple Pay, you give people what they want when it comes to shopping. This openness can be a competitive advantage, especially for close-quarters venues such as 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 think. Here’s a general outline 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 basis of contactless transactions. In this case, it allows Apple devices to communicate with your hardware wirelessly.

Most newer terminals from Square, PayPal, Clover and others have built-in NFC functionality. However, if you are using older hardware, you will need to upgrade. Modern options cost around $300 or less up front. Alternatively, you can use your 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 to support contactless payments such as Apple Pay. This process varies depending on the supplier. This is usually as simple as turning on NFC in your hardware settings.

Related: The best cloud POS systems

Test your Apple Pay setup

Before you start accepting Apple Pay from customers, be sure to test the system to make sure everything is working properly.

Make some test trades using your iPhone or Apple Watch. Tap your Apple device against the terminal to make sure it works. You can take the nominal amount – just a few cents – and always get your money back later.

Train employees

If necessary, train your employees on everything related to Apple Pay. Remember that convenience and speed make the platform attractive. A hassle-free way to collect your customers’ cash is your biggest benefit. So you’ll need well-informed staff to solve problems quickly and keep things running smoothly.

Promote Apple Pay

Once you’re ready to accept Apple Pay, it’s time to let your customers know. The Silicon Valley company provides free stickers and digital materials to spread the word at your point of sale. You can also mention it on your website, signage and advertising.

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 has no additional fees beyond standard credit card processing fees, typically around 2-3% of each transaction. If you need to update your payment terminal to accept NFC payments, you may have to pay an initial hardware fee.

Is Apple Pay safe?

Yes, Apple Pay is very secure. It uses encryption and tokenization to protect customer payment information. Instead of sharing your 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 password, ensuring only authorized users can make purchases.

Do I need a special terminal to accept Apple Pay?

Yes, to accept Apple Pay, you need an NFC-enabled payment terminal. Most modern POS systems and even iPhones have this feature, but if yours does not have this feature, you will need to purchase a compatible terminal.

How do I know if my terminal accepts Apple Pay?

If your payment terminal has a contactless payment symbol (four curved lines), it means it supports NFC technology and accepts 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 eCommerce 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 compatible iPhone can accept Apple Pay.

This article has been reviewed by our retail expert, Meaghan Brophy.