Contactless payments are not a new feature on your iPhone, as you probably know. The Apple Pay feature allows you to make contactless payments with the cards saved on it. When it comes to accepting this type of payment, iPhones cannot do that without third-party hardware. However, that will change soon with the new Tap to Pay feature that Apple has announced.
Tap to Pay has been designed for accepting contactless payments using only your iPhone. So, it should remove the need to use any third-party hardware for that. This new feature would benefit a lot of iPhone users when it is available. Read to know about all the necessary information about Apple Tap to Pay.
What is Tap to Pay and How would it Work on Your iPhone?
The Tap to Pay feature is aimed at turning your iPhone into a payment terminal. In simpler words, it can capture information from credit and debit cards for receiving payments. Apart from that, it should also let you accept payments from digital wallets, including Apple Pay. So, you would not need a payment terminal if you have a recent iPhone model.
Tap to Pay would use near-field communication technology (NFC) to accept payments. This communication protocol allows two devices to communicate while placed within 4 cm of each other. So, it requires you to hold a credit or debit card or a digital wallet near your iPhone. The receiving iOS device will then accept and process the payment automatically.
When and How will iPhones Receive the Tap to Pay Feature?
Apple has not announced a release date for the Tap to Pay feature yet. As per their announcement, it should be available on iPhones by the end of 2022. They would introduce Tap to Pay through a system update as they do with all new features. However, you must keep in mind that this update will not be available for all iPhones.
Your iOS device primarily needs the NFC technology for running Tap to Pay. Yet, this feature is not available on older iPhones featuring this technology. The update is expected to be available only for iPhone XS and later models.
What can You do with Apple Tap to Pay on iPhone?
You would benefit greatly from your iPhone’s Tap to Pay as a merchant. It would make conducting your business and accepting payments much easier than ever. Moreover, Tap to Pay can do more than receive payments from your customers.
Offer an Easy and Reliable Payment Method
With Tap to Pay, you and your customers would get a completely trusted and much easier payment option. Your iPhone would display all the necessary information of the transaction to them, including the amount charged, the recipient and where to tap their cards or devices.
Tap to Pay uses the same technology as Apple Pay. So, Apple would not know what is being purchased and who is purchasing it. All of your transactions would be encrypted and processed with Secure Payment.
Payment Card and Purchase Validations
You can also use the Tap to Pay feature to read your customers’ payment cards. This function can be useful for adding the card for future payments. So, you can set up monthly payments with Tap to Pay by reading a customer’s card.
You might often come across situations where you must provide a refund to customers. Tap to Pay can remove the need for a receipt in such cases. You can view the customer’s previous purchases from you by simply reading their payment card.
Read Loyalty Cards or Issue Them
Do you issue loyalty cards to your customers? Then, the upcoming Tap to Pay feature can make that task much easier. It will allow you to read loyalty cards saved on a customer’s Apple Wallet. You can also use this feature to request your customers to join the loyalty program during transactions.
How to Get Started With Apple Tap to Pay on Your iPhone?
Tap to Pay cannot work automatically and needs a compatible payment app. Many payment service providers in the USA have already announced their support for Tap to Pay, which includes Strap, Adyen, and Square, among other prominent ones.
Also, you must note that Tap to Pay would only be available in the USA for the time being. You must wait for it to arrive in your region if you live somewhere other than the USA.
What are the Advantages and Disadvantages of Contactless Payment?
Apple Tap to Pay can benefit both customers and merchants in many ways. However, they might also pose some disadvantages for both of them. So, you must consider the benefits and drawbacks to know whether this feature would be worthwhile.
Benefits of Contactless Payments
You should look at the benefits of contactless payments from both perspectives to understand them. Here are the main advantages you must consider:
No Processing Fee
Businesses can remove processing fees by implementing contactless payments. This might help them become a bit more favourable to customers. The transaction amount is the only charge applicable in the case of card payments.
Do you want to deal more efficiently with transactions? Tap to Pay has a lot to offer you by enabling faster payment processing. It also helps you reduce the workforce requirements for your business. So, you can use the time spent counting cash or operating card machines for other important tasks.
From a customer’s perspective, this means a seamless checkout experience. They can complete their transactions more quickly using Tap to Pay. Also, they need no longer to carry heavy wallets and only need their phones.
Tap to Pay is encrypted, as we have seen, and that protects it from hackers. As a merchant, you would be able to receive your payments without any hassles. Contactless payments also remove the worries of fraudulent purchases for customers.
Drawbacks of Contactless Payments
Tap to Pay might also have some disadvantages when it arrives on your iPhone. They would be the same as the drawbacks of contactless payments in general.
People still have security concerns regarding contactless payments regardless of their security. So, a lot of customers might simply opt for other payment options. As a result, that may limit the benefits of contactless payments for businesses.
Contactless payments may not work wherever you go in the world. This is yet another significant disadvantage of this payment method. So, businesses and customers cannot make the best of Tap to Pay until its availability increases. Fortunately, people worldwide are increasingly adopting contactless payments for transactions.
Depending on where you live, contactless payments usually have specific transaction limits. So, you cannot make more than a specified amount in a single payment. This can affect both customer experience as well as business efficiency.
Get Timely iOS Updates
You must keep updating your system on time if you are waiting for Tap to Pay on your iPhone. Go to your General settings section and open the Software Update window there. You can download and install the latest update from there whenever it is available.