Merchants with customers who want to use a mobile wallet app to pay for goods and services.
Apple Pay specializes in making it easy for consumers with iPhones (newer than iPhone 6) and Apple Watches to pay for products and services by using their mobile devices. Merchants have the ability to increase their customer base by adding this component to their payment processing capabilities.
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Apple Pay is a mobile wallet app that works for all models of iPhone after iPhone 6 as well as for Apple Watch.
The app uses NFC capability along with a built-in fingerprint scanner to allow customers to pay for just about anything with just their phones. This can be done at retail locations as well as on websites and apps.
Apple’s CEO is Tim Cook and the company’s headquarters are located in Cupertino, California.
Apple Pay offers a touch-free option for paying for goods and services using a customer’s iPhone or Apple Watch. It is among the most popular mobile wallet applications and its competitors are Google Pay and Samsung Pay.
Apple Pay works by using the iPhone’s NFC capability. In retail locations, customers only need to touch their phone to a payment terminal that has NFC enabled. The phone uses a fingerprint scanner to ensure that the purchase is secure.
Apple Pay also offers Apple Card, which also integrates into digital wallets. Card information is stored directly in the app and then tokenized for easy use.
Apple is located in Cupertino, California and Tim Cook is the company’s CEO.
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Value Added Services
Because it is only a part of Apple, Apple Pay does not offer any value added services for merchants in addition to the ability to accept these types of payments. However, Apple does offer many services to help merchants grow their businesses. They include coding education for the purpose of developing company apps and ways to market and promote apps to merchant customers.
Supported Payment Types & Services
Apple Pay works with any of the four major credit cards. Users can also input their debit cards and pre-paid debit cards into the app.
When customers use Apple Pay, the merchant never receives their credit card information. It remains private, so merchants do not have to worry about dealing with sensitive data in their systems.
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Public Pricing Available
Apple Pay’s pricing and fees are very straightforward and easy for both customers and merchants. The company does not charge a fee when customers use Apple Pay to cover the cost of their purchases unless the customer is using a linked Apple Pay Credit Card. A rate of 3% applies to those purchases, but it appears that this amount is charged to the customer and not to the merchant.
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There is no mention on the Apple Pay website about contracts and terms with its merchant customers. It appears that merchants are free to add the appropriate code to their NFC-compatible terminals and they can end the relationship with Apple Pay when they choose to without penalty.
Early Termination Fee
Apple Pay has information available for developers on its website that walk them through every step of the integration process. Apple Pay works with both ecommerce platforms and payment service providers.
Developers only need to enter code into their NFC-enabled payment processing terminals in order to begin accepting Apple Pay payments. For ecommerce merchants, developers can program the code into their existing shopping carts to add this feature for customers.
Apple Pay does have merchant support, which can be accessed through its website. There are forums for developers as well as a robust collection of videos, guides, reference materials and other types of documentation. Merchants can also speak with an Apple customer service representative over the phone through the company’s general support services.
Apple Pay does not have a profile on the Better Business Bureau website and the company is not rated by the BBB.
Other Online Reviews
There are many reviews online for Apple Pay, and many of them are positive. Customers mention how easy it is to use, its powerful security features and the convenience of paying with a mobile wallet.
While Apple Pay is a very easy way to pay, there is a lack of participating retailer locations that accept it as a form of payment. Many reviewers also wish that it was available on older iPhones, as the technology only exists on models that came after the iPhone 6.
There are no outstanding class-action lawsuits or FTC complaints that have been filed for Apple Pay.
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