ABOUT APPLE PAY
Apple Pay is a new and popular platform designed so your customers can pay using an Apple device instead of a swiping a card in the store. It is a contactless platform, meaning your customer does not need to physically swipe their card at the point of sale to pay. Apple Pay is faster and safer for merchants and their customers than many traditional payment platforms. Apple Pay can secure your transactions, protect your customers, guard against charge backs, and prepare you for the new chip compliance mandates in 2015. It is easy, fast, safe, and the most popular of all mobile payments. No matter the size of your business, you can benefit from using Apple Pay.
- Benefit from turn-key setup
- Satisfy mandatory 2015 EMV chip and PIN requirements for merchants
- Reduce chargebacks
- Eliminate counterfeit card transactions
- Protect your customers against identity theft
- Offer more ways to accept payment
- Sign up for Apple Pay in only 10 minutes
- Provide your customers with a payment option they want to use
In the short-term, it’s a benefit for both credit card processors and for consumers that Apple Pay will enhance payment security with bio-metrically authenticated transactions, enabled with Touch ID. While Apple hasn’t specified exactly how the system will protect users’ information — aside from introducing the concept of the Secure Element chip that holds an encrypted Device Account Number to avoid storing credit and debit card numbers — MasterCard, one of Apple’s partners in launching Apple Pay, told Ars Technica that Apple Pay uses the contact-less specification of the EMV standard to provide “industry-standard EMV-level security,” with card numbers “protected using standards-based payment tokens.”
Apple Pay will be the first to use this tokenization system in a widespread program, and credit card processing networks like American Merchant Brokers hope that the launch portends a future payments system where they still hold a central place. Nathaniel Popper recently reported for The New York Times that the immediate cost of Apple Pay is expected to be absorbed by the banks and processing comoanies, which are reportedly offering Apple a lower rate than they’d normally accept on credit card transactions.
The banks hope that they can make up for lower rates with a higher volume of transactions, or possibly processing transactions that are currently made in cash or other payment methods. Major credit card networks, on the other hand, don’t have to pay anything to work with Apple. Popper notes that some in the industry warn that Apple Pay could eventually push down the rates that banks and credit card networks can charge retailers. Those fees are often used to cover the cost of fraud, which is expected to go down with Apple Pay and its use of Touch ID.
Apple Pay also gives retailers another reason to upgrade its point of sale systems, so even if you’re opting out of Apple Pay, you’ll still benefit when stores gradually bring in new systems that are able to accept EMV cards. Consumers, retailers, and banks all benefit when they adopt technology that reduces the opportunity for fraud. Enhanced security, faster adoption of EMV card readers, and lowered potential for fraud are all important benefits of Apple Pay. While the system is still unproven, it has the potential to help effect changes in the payments industry that would make purchases faster, easier, and more secure. Whether you’re planning to use Apple Pay or not, that’s a future that should sound good to everyone.