How to Accept Apple Pay at Your Small Business in 4 Steps
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
This article is part of a larger series on Payments.
The leading contactless payment system, Apple Pay lets your customers pay via their Apple Watch or iPhone (iOS 6 and higher). It is secure for both merchants and customers and costs merchants the same processing fees as regular credit cards.
Accepting Apple Pay, which includes choosing a compatible payment processor, purchasing an NFC card reader, adding an Apple Pay button to your online checkout, and letting customers know you accept the mobile payment service, is an easy way to give your customers more choice in how they pay for items.
Step 1: Choose a Payment Processor That Accepts Apple Pay
Most payment processors and merchant accounts handle Apple Pay transactions, usually at the same rates they charge for regular credit card transactions. If you already have a merchant account, call or check the Help section for how to enable Apple Pay payments. You may need a new card reader or terminal that accepts contactless (tap) payments.
If you are still shopping for a payment processor, below are some of our top recommendations.
Best for | In-store fee | Online fee | NFC reader | Monthly fee | |
|---|---|---|---|---|---|
Most small businesses | 2.6% + 10 cents | 3.5% + 15 cents | $49 | $0 | |
Ecommerce and multichannel retailers | 2.4% to 2.7% | 2.4% + 30 cents to 2.7% + 30 cents | $49 | $29+ (for software) | |
Online payments | 2.7% + 5 cents | 2.9% + 30 cents | $59 | $0 | |
Those with a merchant account | 2.6% + 10 cents* | 3.5% + 10 cents* | $99* | Varies by provider | |
Occasional sales | 2.29% + 9 cents | 3.49% + 9 cents | $29 | $0 | |
Cheapest processing fees | Interchange + 8 cents | Interchange + 15 cents | $49 | $59+ | |
Storefronts | Interchange plus 0.3% + 8 cents | Interchange plus 0.5% + 25 cents | $109 | $0 | |
High-volume sales | Interchange + 8 cents | Interchange + 15 cents | First one free; $75 | $99 |
*Clover NFC devices can be purchased through many different merchant account providers. Rates will vary depending on your provider.
Step 2: Purchase & Install NFC-enabled Hardware
Apple Pay—like other contactless payments—uses near field communication (NFC) technology, which lets two systems communicate wirelessly when in close proximity to each other. Therefore, you need a card reader that has this kind of technology.
Most card readers are already so equipped, but there are still a few that aren’t, like Square’s free magstripe card reader. Therefore, you’ll need to check that your card reader allows tap payments. If in doubt, check the specs or look for the wireless symbol on the reader.
NFC card readers usually have a symbol to alert customers that it accepts tap payments. (Source: Clover)
Installing NFC hardware for Apple Pay
Setting up your card reader is easy. Instructions may vary by app or POS system, but the basic steps are the same. We’ll use Square as an example. Make sure your software or app is updated before pairing your hardware.
Square processes Apple Pay with its Square Reader for contactless and chip, Square Stand for contactless and chip, Square Terminal, and Square Register. It’s our top-rated payment provider and POS.
Enable Bluetooth on your phone, computer, or POS system. (Source: Square)
From the Square app, go to the menu, then settings, then Card Readers. (Source: Square)
Click on Connect a Reader. (Source: Square)
Click on Contactless + Chip Reader. (Source: Square)
Then press the power button on the contactless reader for about three seconds. When the orange power lights start flashing, release it. The lights will turn green. (Source: Square)
You should get a notice when the reader is connected. You can also see its power level. (Source: Square)
You may want to run a test transaction to make sure everything worked correctly. Some merchant services, like Shopify, have a dummy store or a test mode where you can run a trial without it registering on your live system. Otherwise, you may need to run a small transaction, like $1, and refund it. Keep in mind that you may not get the processing fees back if you do it this way.
Small readers like the one shown above may go into sleep mode to conserve power. If that happens, press the power button briefly, and it should automatically pair up again.
Once your reader is set up, don’t forget to train employees. It’s not hard to use Apple Pay, but you should teach your employees how it’s done so they can help customers. The most important step is to be sure the customer has their finger on the Touch ID.
Step 3: Add an Apple Pay Button to Your Online Checkout
How easy it is to add Apple Pay to your online store depends on the payment processor and webstore program. Check the Help section of your specific software for instructions, but we’ll look at Shopify and Stripe as examples.
Shopify represents the easiest way to add Apple Pay to your online store. All you need to do is enable it in the backend, and Shopify handles the rest.
- Go to Settings > Payments, then click Manage under Shopify Payments.
- Scroll down to Apple Pay and click to enable it. That’s it! Shopify will make it an option in your checkout.
Stripe is more coding-intensive and represents one of the more involved processes for adding Apple Pay to your online website or app. Below are simplified instructions to give you a feel for what to do. Full instructions are on the Stripe Support page. Naturally, they will differ depending on your payment provider.
- Get an Apple Merchant ID by registering for an identifier on the Apple Developer website. An example of an identifier would be “merchant.com.{{YOUR_APP_NAME}}.”
- Create an Apple Pay certificate for your app, following the guide in the Stripe Dashboard Apple Pay Settings.
- Integrate Apple Pay into the app using Xcode. In Xcode, click the Signing & Capabilities tab and add Apple Pay.
- Program a check to verify that the user’s device supports Apple Pay and that they have a card added to their wallet. You may have to code this, but some subroutines (like PaymentSheet) already do this for you.
- Create the payment sheet and code it to present to the customer. You’ll need Apple’s documentation for the guidelines on customizing the payment request and then create an STPApplePayContext instance.
- Submit the payment to Stripe. On the server side, you need an endpoint to create PaymentIntent with an amount and currency. Then, you need an API to connect it to Stripe.
- Troubleshoot and test. Stripe test card information is not saved to Wallet, but it recognizes when you’re using the test API keys and returns a successful token to you without charging the card.
Step 4: Let Customers Know You Accept Apple Pay
Apple offers decals (available for free here) and icons you can add to your brick-and-mortar and online stores. It also has instructions for adding notices to your Maps setting and provides other guidelines. Learn more at Apple Pay. Some payment processors, like Square, offer their own Apple Pay marketing kit.
How Does Apple Pay Work?
For customers to use Apple Pay, they will have had to sign up for it on their iPhones and put in their credit card information. After that, using Apple Pay is simple: The customer simply holds their iPhone within an inch of the card reader while they have their finger on the Touch ID. Then, they wait until they see Done and a check mark on the display. Some systems may have a different notification.
Since the COVID-19 pandemic, consumers have been choosing NFC payments for health and safety reasons. (Source: Square)
Benefits of Accepting Apple Pay
- Speed: Apple Pay, like other contactless payments, processes quicker than credit card payments (both chip or stripe) and is certainly faster than cash. That means faster checkouts, shorter lines, and greater customer satisfaction.
- Secure for customers: Apple Pay tokenizes and encrypts card data, making it hard for fraudsters to access it. It also requires fingerprint verification or authentication using the customer’s phone password. So even if a thief had a customer’s phone, they still can’t get the Apple Pay account.
- Secure for businesses: When using Apple Pay for online payments, Apple saves all the card information, so you don’t need to worry about saving customer card info.
- Health: In light of COVID-19, people are more concerned than ever about reducing how often they touch things that others have handled, whether cash or a card reader. NFC payments provide a safe alternative for your customers and employees.
- Popularity: An estimated 70% of merchants are accepting Apple Pay. It is available in 69 countries, and according to Statista, 54% of US and Canadian consumers have used it to buy something in person (63% in the UK). The percentage is around 21% for online sales in these countries.
- Reduced abandoned carts: The top two reasons for people not completing online sales are their frustration with the checkout process (18%) and because they didn’t trust a site with their credit card information (17%), per Baymard Research. Apple Pay makes it easy and keeps card information to itself.
Accepting Apple Pay Frequently Asked Questions (FAQs)
Is using Apple Pay a good idea?
Yes, it is. Secure and easy for both merchants and customers, Apple Pay is a good way to send and receive payments.
Are there additional costs for accepting Apple Pay?
The only additional cost may be for an upgraded card reader if your current card reader does not take NFC payments. Apply Pay costs the same as processing a regular credit card.
Is Apple Pay secure?
Very! In addition to encrypting and tokenizing card information, it requires fingerprint verification when paying.
Does Apple Pay work differently on Apple Watch?
The process is the same for Apple Pay on Apple Watch, although there is no fingerprint requirement for the watch. The watch simply needs to stay on the wrist and needs to be paired with the phone.
Can I accept Apple Pay online and in person?
Yes, you can program your online store to accept Apple Pay.
Bottom Line
Apple Pay is a popular contactless payment, with 45.5% of the share of mobile wallet users. While PYMNTS.com reports that Apple Pay only accounts for 6% of purchases, that still means $90 billion in sales in 2021. This convenient and secure mobile payment service is relatively easy to set up and can speed up checkout, improve customer satisfaction, and help increase the number of sales. Talk to your payment provider about accepting Apple Pay and get started.
