As a retail business manager, if you haven’t already moved to accept Apple Pay transactions, you should do so soon. Apple Pay is poised to become the preeminent mobile payment app on the market today. It can offer your business several advantages and also lure more customers to your store. Much debate has gone on surrounding mobile payments and their ability to replace traditional debt and credit cards. Some retailers have opted to refuse Apple Pay transactions at their stores because they did not want to pay he interchange fees. However, now retailers are reversing their course and the technology has proven itself to be a secure way of making payments. Here are 5 reasons why you should accept Apple Pay at your store:
1. The technology is good for business
Apple Pay has already had a strong start in the market. With an impressive number of banking partners and retail stores, the company continues to grow that list every day. Apple Pay also comes with new iPhones and positioning oneself with the most popular phones on the market is a good idea. Retailers that have accepted Apple Pay transactions at their stores have already witnessed positive results. Whole Foods, for example, reported seeing mobile payments increase by over 400 percent since the technology was launched in 2014. With all these positive associations, it would be foolish not to accept Apple Pay at your store.
“People are using mobile payments with increasing frequency.”
2. Mobile payment usage is on the rise
According to CUInsight, people are using mobile payments with increasing frequency. A recent Harbortouch survey of 1,000 U.S. adults found that millennials make up the highest percentage of mobile payment users, representing 42 percent of all users. With more and more young people gravitating to payment apps like Apple Pay, it is obvious that this trend is only just starting. Consumers have a growing desire to use mobile payment technology and not just at retail locations. Restaurants today are also gaining a competitive advantage by accepting Apple Pay at their establishments. The Harbortouch survey also found that one in five restaurant goers dislikes having to wait for servers to deliver the bill and figure out how to calculate a tip. As such, mobile payment apps significantly reduce such annoyances.
3. The technology protects confidential data
Mobile payment apps like Apple Pay offer consumers added protection. Typically, debit and credit cards required one form of verification – either a PIN or a signature. Apple Pay uses two-factor authentication. The technology requires a PIN and also uses biometric fingerprint scans to authenticate transactions. Thanks to tokenization – a form of encryption – payment information is kept safe from hackers. Even Apple is not privy to customer information as all the data is transmitted directly to the financial institution associated with the account. Accepting Apple Pay at your store translates to a safer experience for your customers.
4. Apple Pay opponents have changed course
Last October, a number of retailers disabled Apple Pay in favor of developing a rival mobile payment app. The Merchant Customer Exchange included retailers Rite Aid, CVS, Target, Best Buy and Walmart. The MCX’s app is called CurrentC and is expected to launch in the third quarter of 2015, however, already a number of MCX partners have changed their position. Earlier this year, Best Buy began accepting Apple Pay and this week, Rite Aid has done the same, noted Fortune. The fact that Apple Pay’s biggest adversaries have reversed course speaks to how important the technology has become.
5. Retail partners continue to be added everyday
Apple Pay is now accepted at over 750,000 locations in the United States and United Kingdom. As of July 7, Apple added 23 more banks and credit unions to its list of partners, making the technology even more ubiquitous. The technology works at popular hotels chains, Coca Cola Vending machines and in airports. Consumers can use Apple Pay at gas stations, online, for in-app purchases, and there are sure to be countless other locations over the coming months. Not accepting Apple Pay transactions means missing out on becoming part of a vast network of innovative companies and institutions.
It is also important to point out that Apple Pay works with the latest iPhones and also with the Apple Watch. In the future, it is likely that more devices will be compatible with Apple’s mobile payment app, making it easier for consumers to make payments on the go. Mobile devices are already deeply entrenched in our modern way of life and payment apps fit nicely into that culture. To accept Apple Pay at your store, you need to have point of sale systems that have near-field communications technology. You should upgrade your POS systems and see what mobile payments can do for you.Back To Blog