Businesses now have the option to use Apple's Tap to Pay to accept contactless payments using their iPhones; well, kind of contactless, if you ignore the cards being tapped against iPhones that is.
Apple Tap to Pay was launched in 2022, and it has now arrived in New Zealand.
In NZ Tap to Pay is available from Netherlands based Adyen and US company Stripe, which both also offer software development kit access; Worldline, Windcave and ANZ are also Tap to Pay providers, with Emerge coming soon.
The service is being sold by Apple as not requiring any additional hardware or terminals, to accept payments. Stripe said all that's required is a supporting app for the iOS mobile operating system on iPhones, and merchants can accept all forms of contactless payments, including contactless credit and debit cards, Apple Pay, and other digital wallets.
Apple's own hardware such as iPhones and watches are of course supported.
Tap to Pay uses the near field communications (NFC) technology on iPhones for the digital transactions. No card details are stored by Apple, which said the service is private and secure.
Worldline which is also offering Tap to Pay said the service is cost-effective and easy to set up and use, with merchants being able to accept payments within minutes through the company's iOS app, using an iPhone XS or later, the latest version of iOS and a network connection.
“Currently, if a business needs to process card payments beyond the traditional in-store checkout, the options are quite limited,” Maxine Elliot, chief executive of Worldine said.
“Usually, when a customer makes an in-store purchase, you typically use a terminal at the checkout. Retailers lease these terminals and pay connection costs, which can be expensive," she added.
"The terminal's software and hardware must also be regularly updated or replaced to stay compliant with evolving regulations,” Elliot said.
R.M. Williams is one of the first retailers to accept Tap to Pay through Adyen, its head of technology Peter Ratcliffe said.
"This game-changing technology has already had such a positive impact on customer interactions at our stores across Australia, making the checkout experience even easier for both our store team and our consumers,” Ratcliffe said.
Lorna Jane's chief technology officer Peter Clarke said the women's activewear business in NZ thrives on delivering exceptional customer experiences, with a particular focus on eventing.
"Implementing Tap to Pay on iPhone while using NewStore POS streamlines our operations, enabling our team to process transactions efficiently with just an iPhone, eliminating the need for additional terminals," Clarke added.
"This also simplifies our workflow during high-traffic periods and off-site events, and ensures our focus remains on delivering top-tier service and products to our valued customers,” he said.
A spokesperson for ANZ said that with the bank's FastPay Tap merchants can now accept contactless payments on an iPhone.
"That means they can accept most types of in-person, contactless payments – from physical debit and credit cards to Apple Pay and other digital wallets (Visa and Mastercard only)," the spokesperson said.
"It’s easy and secure, and no additional hardware is needed – just an iPhone. For merchants, a key advantage is that ANZ FastPay Tap removes the need for them to develop and maintain their own payment product; it provides a fully certified solution that uses the built-in security and privacy features of iPhone to help protect business and customer data," the spokesperson added.
Update: Tap to Pay merchant fees and charges vary
A spokesperson for Worldline NZ said the provider works with a range of partners (EFTPOS Central, Polygon Payments, POSMate).
Merchants can contact these partners to get set up with the Tap On Mobile system, and they will have their own pricing models, the spokesperson said.
Stripes pricing for NZ is 2.7 per cent, plus $0.30 per transaction for domestic cards; for international ones, the charge is 3.7 per cent $0.30. Custom pricing is available for merchants with large transaction volumes, and for those with unique business models.
ANZ has no set-up fee for ANZ FastPay Tap, but merchants are charged a monthly service fee of $10+GST per connection, and a monthly device fee of $5+GST per device.
Domestic Visa and Mastercard debit contactless transactions are charged a 0.70 per cent fee, while domestic Visa and Mastercard credit card contactless transactions are charged a 1.50 per cent fee.
International Visa and Mastercard International debit and credit card contactless transactions are charged a 2.50 per cent fee.
Merchants signing up for ANZ FastPay Tap before 20 February 2025 can get the first 12 months of the monthly support fee and the monthly device fee waived, according to ANZ.
7 Comments
It will be fascinating to see what the charges are: genuinely disruptive or just enough less to make the switch attractive to retailers?
It's also going to be interesting to see the reaction of the big-dog banks here, considering the service is being offered by the biggest corporate mastiff out there: it's not like they can acquire or undercut Apple.
The card sector badly needs a shakeup as it must be inordinately profitable for the service providers, and a source of endless annoyance for the public who have the service charges imposed passed on - although it does make the charge transparent.
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