Merchant Payment Systems: What Retailers Need to Know About Apple Pay

Just in case you missed Apple’s recent announcement, the tech giant has introduced what it hopes will be a revolutionary payment system for retailers. Unlike Google Checkout, Paypal, and other competitors, this new service may dominate the payment space because the infrastructure is already there. It’s called “ApplePay.”

It Integrates With Existing iPad POS Systems

One of the coolest things about Apple’s ApplePay is that it integrates with existing iPad POS systems. So, you’ll likely not have to do much to upgrade your existing POS terminal. For some businesses, you may need to upgrade your hardware though. Revel Systems announced recently that it has released the first ApplePay-ready iPad POS terminal.

But, software solutions may make this an easy upgrade – especially if you run an online store.

ApplePay Only Works If You Have Apple Products

While ApplePay is a boon for users and businesses that use iPads, it’s not for everyone. Obviously, the biggest stumbling block will be Android users and Windows Mobile clients. ApplePay currently only works if you plan on using Apple’s devices, as they get deep integration with products like iPhone and the new AppleWatch.

Competitors are a bit worried, but are in no danger of losing their business overnight. Apple will probably dominate the smartwatch category but its mobile phone share is just 41.4 percent. That might sound like a lot but a good bit of the competition is Google’s Android OS. That means that Apple won’t be dominating the mobile payment space until it can tip the scales in its favor.

Apple’s Security Is Solid

Despite security issues with early versions of iCloud, the security for ApplePay looks pretty solid. The company has partnered with banks and is going to be at least as secure as traditional payment options – safer, really. You see, ApplePay won’t be storing any credit card or debit card information. Instead, it will sync up with your bank and then generate random payment information for each and every transaction.

If the user’s iPhone or AppleWatch is stolen or misplaced, there’s no reason to cancel the credit or debit cards. You would just lock up your phone or erase the data. Then, if you get it back, download the backup and you’re good to go. This is a revolutionary way to deal with fraud.

If this becomes popular amongst iOS users, this will probably dramatically decrease credit card and debit card fraud.

Apple’s Payment Processing Provides Fast Turnover

It takes about 10 seconds to process an ApplePay transaction. What this means is that checkout lines will be much shorter than before, and customer turnover will be higher. No more manual swiping of credit cards and no more handing over your card to a cashier.

The biggest problem, traditionally, with initiatives like this is that the infrastructure wasn’t in place. So, regardless of how cool the tech was, no one could really use it in everyday life, which means there was never mass adoption. But, Apple has figured out how to solve this problem by negotiating with major banks and stores.

So, now, you’ll be able to use your Visa card tucked inside your AppleWatch or iPhone to make a purchase as places like Target – and it’ll only take you a few seconds to checkout.

Jessica Bunn started in retail sales as a teenager. Now a sales manager in a busy department store, she likes to wind down at the end of the day by writing. Visit CardPaymentOptions for more details about accepting Apple Pay and other payments on your website.