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Apple Pay has revolutionised digital payments for consumers and merchants alike. Developed by Apple Payments Services LLC, it forms a comprehensive mobile payments service that includes Apple Pay for seamless transactions and Apple Cash for cash transactions. With 640 million users worldwide as of 2024, Apple Pay integrates with Apple devices and supports a wide range of payment cards.
This guide explores Apple Pay's features, supported devices, payment methods, and more.
What Is Apple Pay?
Apple Pay is a digital payment service that allows users to make purchases using their Apple devices. It supports various payment options, including credit cards, debit cards, and prepaid cards, as well as Apple Cash. Apple Pay is accepted by over 574,600 businesses worldwide, including stores, websites, and apps. Designed for convenience and security, it leverages near-field communication (NFC) technology and biometric authentication, such as Face ID or Touch ID, to facilitate quick and secure transactions.
Key features and benefits of Apple Pay
1. E-wallet integration across Apple devices
Apple Pay works across a range of compatible Apple devices, including:
- iPhone: Most models running iOS 8 or later.
- iPad: Devices with iOS 10 or later.
- Mac: Macs with macOS Sierra or later, and with Touch ID functionality.
- Apple Watch: Paired with an eligible device, providing payment access through NFC.
Each of these devices comes with authentication features for cash transactions like unique passcodes, Touch ID, Face ID, or a double-click on Apple Watch's side button. Such seamless integration is a hallmark of the Apple ecosystem and user experience. Apple users can make payments with ease, whether they're using their smartphone or an Apple company's wrist-worn wearable device.
2. Support for Apple Card and a wide range of other payment cards
Apple Pay supports most major card issuers, including Visa, Mastercard, and American Express. Users can add their payment cards to the Wallet app, whether they are credit cards, debit cards, or prepaid cards. Apple Card, Apple's proprietary payment card, also works seamlessly within Apple Pay, offering benefits like daily cash rewards and enhanced security.
4. Support for instalment payment providers
While Apple no longer offers its own Buy Now, Pay Later (BNPL) service, you can still pay in instalments via Apple Pay using your debit or credit card. Check this list of supported card issuers and participating banks around the world.
5. Apple Cash for peer-to-peer transactions
Apple Pay includes Apple Cash, a feature that enables cash transactions between users. Users can send or receive money directly in the Messages app, store money securely in their Wallet app, and even use it for purchases or withdrawals. The Apple Cash Family feature allows families to share and manage funds through a centralized system.
6. Secure transactions with advanced security checks
Apple Pay ensures secure transactions through tokenization, which replaces actual card details with a unique digital token during payments. No sensitive information is stored on Apple's servers or shared with merchants. Authentication via Face ID, Touch ID, or passcodes adds a layer of security. These features act as security checks to keep customer information secure and ensure every transaction is protected against fraud.
7. Versatile payment options beyond Apple devices
Apple Pay is available for contactless payments in physical stores, online purchases on websites, and payments via third-party browsers like Chrome. Users can choose it as their default payment option, simplifying transactions across various platforms, from retail terminals to apps.
Benefits of Apple Pay for stores and merchants
Contactless payments at terminals
Merchants benefit from Apple Pay's easy integration with contactless payment terminals. By accepting Apple Pay transactions, businesses can cater to a customer base who are seeking fast, secure, and modern payment options. In fact, Apple Pay holds a 54% share of all in-store mobile wallet usage in the US, and has high user penetration rates in countries like the UK, Canada, and Australia. From grocery stores to luxury retail stores, Apple Pay supports a wide range of merchants globally.
Online and app purchases
For e-commerce businesses, Apple Pay simplifies checkout processes by allowing users to pay directly from their Wallet app without entering payment information manually. This creates an effortless experience for customers, reducing cart abandonment rates and enhancing loyalty. By 2023, Apple Pay had processed 14.2% of all online consumer payments in the US, signaling a growing consumer preference for its seamless and secure transaction experience.
Cross-browser compatibility
While originally limited to Safari, the release of iOS 8 has expanded Apple Pay's compatibility with third-party browsers like Chrome, Edge, and Firefox for online purchases. Online shoppers using these browsers will see an Apple Pay button displayed on the payment page. When they click the button, they will see a code, which they need to scan with the camera of their iOS 18-enabled iPhone. This triggers Apple Pay on the person's iPhone, from where they can complete the payment.
With this expanded reach, businesses can attract more customers who prefer digital payments services over manual card entry. This broader compatibility also allows merchants to reach users on Windows devices and non-Safari browsers.
Apple Cash: Managing money beyond purchases
What is Apple Cash?
Apple Cash is a virtual card stored in the Wallet app, allowing users to send, receive, and store money securely. Funds in Apple Cash can be used for:
- Paying bills or merchants.
- Making in store or online purchases via Apple Pay
- Sending and receiving money directly in Messages or Wallet
- Transferring money to a connected bank account.
Apple Cash Family
This is a feature within Apple's ecosystem that allows family organizers to set up and manage finances within their household. For example, parents can allocate allowances to their children (under the age of 18) via Apple Cash and monitor spending using in-app activity tracking features.
Daily Cash rewards
Users who opt for Apple Card (a credit card backed by Mastercard and Goldman Sachs) with Apple Pay receive cash back rewards on their purchases. These rewards are credited daily to their Apple Cash account, making it an attractive feature for frequent shoppers.
Setting up Apple Pay
- Add payment cards
To start using Apple Pay, open the Wallet app on your device, and tap the "+" sign to add a payment card (credit card, debit card, or prepaid card). Then, follow the on-screen instructions to verify your card via your card issuer or bank.
- Configure Apple Pay settings
Set a default card for quick payments and enable Face ID or Touch ID for authentication. These settings simplify the process for making purchases in stores, apps, or online.
- Link Apple Cash
Activate Apple Cash in the Wallet app to enable peer-to-peer payments and access to Daily Cash rewards.
Apple Pay's global adoption
Apple Pay operates in almost 100 markets worldwide and is available on millions of websites, apps, and tens of millions of stores. It is also supported by thousands of banks and network partners around the globe. With widespread acceptance at contactless terminals, online platforms, and apps, Apple Pay drives the global shift toward cashless payments.
Why Apple Pay matters to online businesses
With features like Apple Card, Apple Cash, and contactless payments, Apple Pay simplifies the way users transact while maintaining high standards of security. Merchants can benefit from Apple Pay's fast payment terminal integration, while users enjoy perks like daily cash rewards and streamlined transactions across eligible devices.
Merchants and consumers looking for a secure payment option will find Apple Pay to be an essential tool for e-commerce. Embrace Apple Pay using a payment service provider like Antom to offer a smoother payment experience for Apple device owners.
Contact us to learn more about Apple Pay and payments in multiple markets globally.
