Set up Tap to Pay: How to accept payments with an iPhone
Tap to Pay makes it possible to accept customer payments from an iPhone with no additional hardware. Find out the best use cases for Tap to Pay and how to implement it.
For organizations that need flexibility or operate on a tight budget, an iPhone can be an ideal tool for accepting payments from customers.
With Apple's Tap to Pay feature, vendors can use an iPhone to securely accept in-person contactless payments. In other words, Tap to Pay makes it possible to turn an iPhone into a point-of-sale (POS) terminal. A customer can select a card from their digital wallet and tap their device against the vendor's iPhone to make a purchase. If they don't want to use a digital wallet, they can also pay by tapping a contactless credit or debit card against the iPhone.
This feature can cut costs and increase simplicity when starting a business. SMB owners and IT decision-makers should learn how Tap to Pay works, the pros and cons of it and how to properly use it.
Benefits of Tap to Pay for vendors
For larger organizations with established payment systems, Tap to Pay might not be an obvious choice. However, it can be a good fit for small businesses and retailers that need greater mobility. Using an iPhone as a payment terminal can be preferable over more traditional POS systems in several scenarios. Vendors might turn to Tap to Pay for its pricing, security, mobility and customer experience benefits.
1. Cost-effectiveness
For SMBs and startups, using an iPhone as a POS terminal can be more affordable than investing in a conventional POS system. The initial setup costs are lower, and there's no need to buy separate hardware.
2. Regular updates and security
Apple rolls out regular software updates to iPhones, ensuring that devices remain secure and up to date with the latest features. This can be advantageous over dedicated POS systems, which require more effort to maintain and update.
Additionally, contactless payments are often more secure than other common payment methods, such as swiping a magnetic stripe card. Encryption and tokenization technologies reduce the risk of card skimming and fraud.
When an iPhone is ready for a Tap to Pay transaction, a contactless symbol appears on the screen. Customers should have a similar symbol on their card or device.
3. Mobility, flexibility and adaptability
Having a portable POS is ideal for businesses that require mobility, such as food trucks or pop-up shops. Merchants can easily bring an iPhone anywhere, and it takes up less counter space than a full POS system.
Tap to Pay also provides flexibility for customers. Because it uses near-field communication technology, Tap to Pay enables customers to pay with a contactless card, Apple Pay or another mobile wallet. Regardless of the contactless payment method, there's no need to use a different card reader or reposition the device.
Of course, this also means that organizations should assess their customer base before adopting Tap to Pay. Contactless payment is increasingly common, but it's still not a viable or preferable option for everyone. Consider whether the business is likely to attract customers who prefer cash or whose credit cards don't yet have an EMV chip. If so, it's a good idea to offer other payment options.
Encryption and tokenization technologies reduce the risk of card skimming and fraud.
4. Enhanced customer experience
Tap to Pay provides a convenient, simple payment option, which can reduce wait times and improve customer satisfaction. This is particularly helpful in high-traffic retail environments and service industries where quick transactions are crucial.
Because it streamlines the checkout process, merchants can serve more customers in less time. This efficiency can increase sales and improve customer turnover, especially during peak hours.
Considerations for Tap to Pay implementation
SMB owners and IT administrators should consider Tap to Pay's drawbacks before pivoting to the payment option. Implementation challenges include slow consumer adoption, technical issues and reliance on iPhone battery life.
There are also some prerequisites to using Tap to Pay. To set it up, businesses must ensure that they have the following:
A merchant account.
An iPhone XS or later device, running iOS 15.4 or a later OS version.
A compatible payment service provider -- such as Stripe, Clover or Square -- and its corresponding mobile payment app.
A reliable internet or cellular connection for real-time transactions.
During implementation, admins should spend time choosing a payment service provider and managing security details. These factors are essential to maintaining functionality and data protection down the line.
Choosing a payment service provider
When choosing a payment service provider for Tap to Pay, focus on regulatory compliance for secure payment processing. The Payment Card Industry Data Security Standard is the key regulation to follow. Look for strong encryption and tokenization. Other factors to consider include integration ease, developer support and processing fees. It's important to choose a provider that fits the business's budget while ensuring security and performance.
Ensuring Tap to Pay security
Apple encrypts payment credentials and tokenizes transactions, ensuring sensitive data remains secure even if the device is compromised. Coupled with biometric controls such as Face ID, the system offers a solid defense against unauthorized access. Still, when working with customer card data, bank account numbers and other financial information, strong security is vital.
Network security is one area where admins must take extra precautions. Secure communication channels between the payment terminal and processor are nonnegotiable. Users should be cautious with public Wi-Fi and opt for secure networks during transactions.
Regular software updates are also essential to secure mobile payments. All relevant apps must undergo rigorous security vetting to prevent breaches. Additionally, take steps to ensure user awareness. Educating users on the dangers of phishing and fraudulent apps can drastically reduce the chance of compromise.
How to set up Tap to Pay on an iPhone
The process to set up Tap to Pay is simple for SMBs and large organizations alike. Once admins have chosen an iPhone to serve as a payment terminal, they can configure the Tap to Pay settings on the device.
To set up Tap to Pay for a business, carry out the following steps:
Ensure device compatibility. Check that the device is an iPhone XS or later and that the OS is iOS 15.4 or later.
If it's not already installed, download the payment service provider's mobile app to the iPhone.
Open the app and sign in or follow the onscreen prompts to create an account. In the app, navigate to the payment settings and enable Tap to Pay.
The iPhone should then be able to accept contactless payments. When it's time to start a transaction, open the app and enter the transaction amount. Present the iPhone to the customer once the contactless symbol appears on the screen. The customer can then tap the contactless symbol on their card or device against the screen to pay.
Will Kelly is a freelance writer and content strategist who has written about cloud, DevOps, AI and enterprise mobility.
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