The new Apple Pay system was introduced on September 9th of this year. This technology allows customers to pay with their iPhone 6 and Apple Watch (scheduled for release in early 2015) through NFC (Near Field Communication) technology within the phone. This technology allows customers to tap their smartphone on a specialized reader at the POS (Point of Sale) system which transmits an encrypted and secure unique account number. Credit or debit card numbers, names, and the security codes are not stored on the iPhone or Apple watch.
Visa, Mastercard, Discover, McDonalds, Macys, Walgreens, Whole Foods, Subway, Target, Uber, and OpenTable are just a few of the corporations partnering with Apple on this venture.
What does this mean for you as a business owner?
Based on your clientele, some customers may have already begun asking if you accept Apple Pay. There is likely to be a real demand for this technology because Apple has brand clout, strong customer loyalty, and partnerships already in place with the card networks, major card issuers, and several large retailers. As a business owner, you should consider upgrading your terminal or POS technology (if it is necessary), especially if your customers are technologically savy. You will want to get a terminal or POS system that is magstrip, NFC, and EMV chip technology compatible due to the shift of fraud liability occurring in October 2015.
Call your processing provider and ask them to help you understand this technology and if you should upgrade. If you upgrade your system, do not sign a long term lease, as some providers will suggest. These devices are very affordable and can often be rented on a month to month basis for less than $10.