Apple sought to change the world of business and consumer relations with the release of ApplePay in October, and businesses around the country began the task of preparing and adapting to accept this new method of payment. In short, ApplePay allows consumers to keep all their financial information — bank accounts, credit cards, and other forms of digital payment — within an easy-to-use digital wallet, requiring only the transmission of data from phone to register. In order for business owners to make the transition to this quick payment method, they should understand how the technology behind ApplePay works, the implementation of accepting ApplePay, its security features, and how ApplePay will benefit their business.
ApplePay: An Application of Near-Field Communications
With the constant threat to the security of many major credit and debit card companies, card issuers began installing a microchip within each card that contains the card information. This microchip enables the card to communicate wirelessly when in close proximity to a swipe-free reader, or more commonly called a near-field communication reader. The microchip issues a unique, one-time-use code for processing payment to the respective card. If you do not already utilize a near-field communication reader in your point-of-sale transactions, you will need to invest in a near-field communications reader, which may require you to upgrade your current, older sales software.
Effortless Transfer of Funds Into Your Business Account
There are no fees associated with using ApplePay aside from those which customers already pay for utilizing a debit or credit card, such as charged interest or the pay-per-swipe of some prepaid debit cards. ApplePay functions in the same manner that you receive current payments through debit or credit cards. In addition, you will still be responsible for any possible fees charged by your financial institution for accepting debit or credit cards as methods of payment. Consult with your financial institution to find out if you qualify for any possible discounts in advancing your accepted payment methods.
The Security of ApplePay
Apple does not track any personal information of either your business or consumers through the use of ApplePay, and Apple’s Find-My-iPhone app gives consumers the power to immediately disable ApplePay from any other Apple device. In an effort to minimize unauthorized transactions in ApplePay, each payment requires the user to scan his or her fingerprint to initiate and complete a transaction. Furthermore, Apple recently upgraded the security of the iCloud with additional firewalls and lock-out security steps to prevent hackers from gaining access to a consumer’s ApplePay account.
A High Return on Investment
ApplePay gives you the ability to accept additional methods of payment outside the realm of your current capabilities. As your business becomes more involved in the growing consumer trend toward advanced methods of payment you may see an increase in your sales, profits, and consumer relations. Your consumers will perceive that your business is “staying up-to-date” and legitimately concerned about consumer security when you begin using ApplePay. While I am unable to give you exact details on potential return on your investment, some of the largest corporations in the world — McDonald’s, for example — have made the switch likely with the potential for increased profits in mind.
As a business owner, you need new customer acquisition and your current consumers to drive your business, and ApplePay provides you another way to show consumers that you mean business.