The technology has long been here. For years, Near Field Communication (NFC) has been available for instant transactions on solutions such as Google Wallet, SoftCard (in the US) and Vodafone Wallet. But perhaps the big revolution has been halted due to the lack of NFC in Apple’s earlier iPhone models. Only in iPhone 6 and Apple Watch has it been included.
That being said, contactless payments are likely to explode over the years to come. Research by the UK Cards Association shows that in 2014, 319 million transactions were made in the UK alone using the contactless technology. That’s a 220% increase from 2013. With everything else practically already in our smartphones, this is perhaps the next great leap towards true mobility.
In 2014, 319 million transactions were made in the UK alone using the contactless technology. That’s a 220% increase from 2013.
What is NFC?
Basically, NFC technology enables two devices to communicate instantaneously and wirelessly in close range with each other. There is no need for an internet connection or pairing code. There is huge potential with NFC, and some believe that we’ll soon keep our entire wallets inside our smartphone’s NFC chip.
How will Apple Pay work?
Apple Pay transactions are fast and easy – all customers have to do is hold their iPhone 6 or Apple Watch close to the contactless reader and touch the Home button (or, in the case of Apple Watch, double-click the side button) to enable the purchase. If implemented on a wide scale, payments and service will become much faster – to everyone’s gain. Our tests show that purchases are completed 10 seconds faster on average.
“Contactless is great and it speeds up small transactions a lot! It’s really useful for us” – Nick, Store Manager at We Built This City on Carnaby Street.
Why is Apple Pay good for small businesses?
First of all, if your business is likely to grow, you’ll want to be a part of the latest (awesomely cool) technology from the start. It won’t be long before your customers will expect contactless payments as the standard in both shops and restaurants. Naturally, your business will benefit from faster transactions and shorter lines – and with a cost-efficient card reader a fast return on investment is a no-brainer.
Does Apple Pay work with iZettle?
Yes! In June 2015 we launched our Reader Pro Contactless. It’s designed to accept both magstripe, chip and contactless payments from from any NFC payment solution, including (of course) Apple Pay. You can get card reader here.
Is Apple Pay safe?
Yes again! Apple Pay has been implemented in a way that it protects both merchants and cardholders from fraud. When a card is added to an Apple Pay account, the card number is converted into a Device Account Number and stored in the Secure Element chip on the device. This number is unique per device and cannot be used for making transactions on any other device. Therefore, the real (physical) card details and personal information are never shared with any vendors – they are not even stored by Apple. Additionally, encryption mechanisms used during the actual payments are equally secure to normal Chip & PIN transactions – leaving the merchants with nothing to worry about!
What about the £20 limit on purchases with Apple Pay?
In the beginning, a majority of merchants won’t be able to accept Apple Pay payments over £20. This cap is expected to rise in September 2015 according to Wired. However, if you use the new iZettle card reader, there’s no cap whatsoever since we don’t impose any limits on merchants or cardholders.
Welcome to the next step in the mobile payment revolution!