What is Apple Pay and How Does it Work?

Apple launched the Apply Pay e-wallet to enable mobile payments. The e-wallet was launched in 2014 and since then it has gained immense popularity in the digital payment industry. Online payments are convenient for users, as they no longer need to bring cash or credit cards at brick-and-mortar stores. All they need to do is hold the smartphone in front of the store’s QR code and enter the amount. Considering the number of people that request online payment services, businesses have started integrating Apple Pay and other e-wallets into their payment ecosystem to increase sales.

Apple Pay is a payment app for Apple mobile users. It was designed to make digital transactions convenient and safer for customers. Now, people can pay using their Apple wallets without having to carry cash and credit cards to every store. In simple words, this e-wallet allows you to process multiple transactions using your device. Keep reading to learn more about what is Apple Pay, how to use Apple Pay, and how does Apple Pay work.

How to Use Apple Pay on iPhones?

Apple Pay allows iPhone users to make payments using different options. It includes the payment through messages, in-app store, online payment, or payment at the brick-and-mortar stores. To start using Apple Pay for digital transactions, the user needs to link their credit card or bank account to their Apple phone. The app works on Apple, iPhone, iPad, and Apple Watch. Whichever mobile you use, you need to link your credit cards to Apple Pay to start using it.

As soon as you have added your card details, you can use a password or touch ID to pay with Apple Pay. Some users can integrate face ID for maximum security. Below we have listed the steps for how to pay with Apple Pay.

  1. Open the Wallet app on your mobile and click on the ‘+’ icon
  2. You will be asked to enter your credit card information. If you have your cards added to other Apple devices already, you can select that card and send the security code.
  3. You might be asked to download the bank’s or credit card company’s official mobile app to complete the process.
  4. Wait for a few minutes for your bank or the credit card company to verify your card details.
  5. As soon as your card is accepted, you can start using Apple Pay on the websites and retail stores that accept this payment method. You will find the Apple logo on the websites and near the payment terminals at the retail stores that accept this e-wallet.
  6. Following the above steps, you can change your current credit card or add another card.

Where Does Apple Pay Work?

As mentioned earlier, Apple Pay has become one of the popular payment methods for customers and retailers. Businesses have started embracing Apple Pay since more and more customers now want the flexibility of making payments from their mobiles.

  • For Buying Apps or In-app Services: Apple Pay can be used for buying paid apps or the services within the apps. All you need is your password or touch ID to process the payment in one tap. You could also use it for making payments for the subscription-based models, especially services you have purchased from Apple. Once you get your Apple Pay set up on your device, there isn’t an easier way to make payments than this e-wallet. You can buy digital services and in-app products with a single tap of a button.
  • Pay on the Web: Many website owners accept payments through Apple Pay. It works just like the credit and debit cards payments, the only difference is that you no longer have to enter your card numbers manually. Instead of having to type your credit card number and other card details, you can enter your password for the Apple Pay app and pay through the cards linked to your Apple Pay account. Note that this works only on the websites that accept Apply Pay. 
  • In-Store Payments: Apple Pay is also accepted at restaurants, gas stations, grocery stores, supermarkets, and other retail stores. So, if you ever plan a visit to these land-based stores, you can bring your iPhone or iPad to make the payment through Apple Pay. It is one of the safest ways to complete the transaction, as you only need to verify your identity by entering the passcode. 

Why Use Apple Pay for In-store and Online Payments?

Customers prefer Apple Pay for sending payments to retailers because of a few reasons. For starters, they don’t have to fumble the cards or count cash to make the payment. Secondly, Apple Pay is considerably safer than any other payment method. There is no risk of losing money or paying extra cash when you have your credit card linked to Apple Pay. 

Besides, it is incredibly convenient for your customers. That’s why retailers and online businesses need to start accepting Apple Pay to ensure more completed transactions. You can use the POS terminal, which is installed at your brick-and-mortar store for receiving payments through Apple Pay. Ask the terminal provider whether it accepts Apple Pay before installation. Then, put the Apple Pay logo near the terminal.

A business owner has to choose a payment gateway and payment processor to accept payments through this e-wallet. The payment processor is responsible for verifying the credit card details and validating the transaction. It also ensures secure transactions over an encrypted network. The payment gateway and processor validate both in-store and online payments made through Apple Pay. 

Bottom Line

Having this online e-wallet payment system in your store can save you a lot of time and money on processing payments manually. You no longer need a cashier to count money and record the transaction in spreadsheets. If you have not already integrated Apple Pay, now is the best time to add this payment method to your system and start accepting payment via Apple Pay App.

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