The function “Tap to Pay” Apple Pay is a significant innovation that allows merchants accept contactless payments simply using your iPhone, without having to depend on bank POS.
Introduced as part of the Apple Pay ecosystem, this functionality seeks to simplify the payment process for both merchants and consumers and although it has largely gone unnoticed, we believe that it would be very good to describe the benefits of this system.
Throughout this post, we will talk to you about how “Tap to Pay” works and why we believe that as a payment protocol it is something tremendously interesting.
How does “Tap to Pay” work in Apple Pay?
Apple Pay's "Tap to Pay" is a function that turns an iPhone into a contactless payment terminal, but in all its aspects: both as the means to issue and to receive payment, in a similar way to how Bizum would work.
With this technology, merchants can accept contactless credit and debit card payments, as well as other digital wallets such as Apple Pay, Google Pay, and Samsung Pay, all through their iOS device without the need for additional hardware.
Initial setup
To make use of this technology, the merchant you must download a payment app compatible with “Tap to Pay” from the App Store and once you have it, you must follow the instructions to set up your account as a seller.
The payment process
When a customer is ready to pay, the seller will simply open the payment app on their iPhone and select the option to accept a contactless payment.
And to make the payment, in the same way that payments are made with cards registered in Apple Pay, you simply have to place your bank card, iPhone or Apple Watch on top of the merchant's iPhone, in the same way as you would do with a POS.
Receipt of funds
Once payment is made, transaction funds will be deposited into the merchant's bank account, similar to how other payment systems work.
Apple Tap to Pay Features
And now that we know what it is, let's see the characteristics of this new way of paying.
Ease of use
If something cannot be denied, it is that using “Tap to Pay” is terribly simple and cheap, since merchants only need a compatible iPhone and a payment app to start accepting contactless payments.
To use this technology, a traditional payment terminal or a card reader is not required, so the banking sector has no more money with its commissions, and it also has the advantage of compatibility with traditional cards and basically cany device that carries NFC and is capable of paying.
Security
Apple Pay is known for its high security standards, almost to the just like the rest of the products it launches the brand.
And this service shows a very advanced security standard, using tokenization technology to protect payment information, ensuring that actual card data is never stored or shared with merchants.
Additionally, each transaction requires biometric authentication (Face ID or Touch ID) or device passcode, which will further ensure that payments are being made from a legitimate access source.
Advantages of Apple Pay “Tap to Pay”
Now that we know how it works, I think it would be appropriate to list the advantages that we see in this system compared to the traditional payment system with bank cards.
Convenience
I think it is clear that, with this payment method, tBoth merchants and customers benefit from a quick and easy payment process, thus reducing the need for additional equipment, with the advantage that payments are made instantly.
And with this we kill two birds with one stone: are avoided POS maintenance feesas well as a impossibility of charging in the event of a breakdown, or the Internet on which it is supported. In this framework, if the phone works, payments can be made without problem.
Mobility
“Tap to Pay” is ideal for small and medium-sized businesses, street vendors, and any situation where mobility is key, and it is more convenient to receive payment with your mobile phone than to carry around extra “junk” to be able to collect, being able to accept payments anywhere without being tied to a fixed terminal.
What do I need to be able to use “Tap to Pay”?
Device compatibility
Currently, “Tap to Pay” It is available on almost all iPhone models that are medium recent, which have the NFC technology necessary to process contactless payments and have not become obsolete in terms of updates (Yes, unfortunately that old iPhone 4S that you have in the office drawer is not suitable for this)
Software that is recent
Users and merchants They must ensure that they have the most recent version of the iOS operating system and use payment applications that support “Tap to Pay”, because not everyone can support it.
Let's remember that “Tap to Pay” is a protocol, not an application itself, so you will have to find a service provider to use it.
“Tap to Pay”: our analysis
As a payment protocol, we have to say that Apple Pay's "Tap to Pay" is an innovative solution that transforms the way businesses will be able to accept contactless payments, breaking to a certain extent the monopoly that currently exists with bank POS terminals.
But after having seen how it works and especially thanks to its ease of use, high security and not requiring additional hardware, we believe that this feature is well positioned to revolutionize mobile commerce and provide a frictionless payment experience for both customers. merchants and consumers.
Will it be the next standard that will determine how sales will be charged? Personally, I think not, since The banking sector has a clear interest in maintaining POS terminals, but I think it's worth keeping an eye on it to see how it evolves in the future, which may surprise us later.