How to Accept Payments through Apple Pay

Mobile contactless payments have become a hot trend in Europe. Two in three Europeans prefer contactless payments when it comes to online shopping. Not surprisingly, digital wallets are now the most preferred payment method in Europe. Mobile commerce now accounts for nearly three-quarters of all global e-commerce sales. In 2020, more than 50% of online sales in Europe were on mobile. And, in the next five years, mobile shoppers will double in Europe’s top 5 e-commerce markets. The recent rise in card interchange fees in Europe has created another reason why digital wallets like Apple Pay will see greater adoption by buyers and merchants alike.

What is Apple Pay?

Apple Pay is a contactless payment technology from Apple. It is a mobile payment service and a digital wallet. Users can pay online or in stores and also transfer money to other users from their Apple devices. This payment is built into iPhone, Apple Watch, Mac, and iPad. It is a popular payment method in several countries. Thousands of stores and merchants worldwide accept this payment. In Europe, it is one of the leading digital wallets, along with PayPal. Most major banks and card schemes support this payment.

How does it work?

Apple Pay works online or in-store – basically anywhere that accepts contactless payments. Consumers can use it to make touchless payments on the go. They can pay right from their devices without touching buttons or terminals, or handling cards or cash. Be it at a supermarket, grocery store, online shop, or the taxi/ subway. It also works for tap-to-pay payments where users can pay by waving or tapping their iPhone in front of an NFC-enabled merchant terminal. Users authorise payments with Touch ID, Face ID, or their passcode.

Payments using Apple Pay are fast and secure.
Apple Pay replaces a customer’s card data with tokens and stores them securely on an external server. Actual card details are not stored anywhere on the Apple device or server. Apple also creates a Device Account Number for each device and card that a customer uses, and stores it on a chip in the device. When the customer makes a purchase, the token is called up and shared with the retailer or merchant. This allows the customer to complete the payment in one-click – either using Touch ID/ Face ID or a passcode.

Why should merchants use Apple Pay?

Apple Pay makes a great payment method to add to your checkout. Here are three reasons why:

Higher Acceptance
Apple Pay lets you accept payments from millions of shoppers who use iOS and Safari across North America, the UK, Europe, and Asia-Pacific in 100 plus currencies. You can also reach millions of iOS users through a fast, native checkout.

Enhanced Security
This payment comes with two-factor authentication to secure payments and keep customers safe. It is compliant with the Strong Customer Authentication (SCA) regulations required under PSD2. This payment is safer and more private as every transaction is tokenized so you don’t have to worry about handling sensitive cardholder data. It also helps you to comply with PCI DSS norms.

Increased Conversion
This payment removes the need for users to manually type card or shipping details. Thus, payments are smooth and frictionless. Adding this payment to your website or app helps you increase online conversions and boost your sales.

How can merchants start accepting Apple Pay payments?

If you are a merchant who already accepts credit and debit cards, you should speak to your payment service provider to help you set up the payment. Your customers will love its simplicity, and you’ll love the increased conversion rates and new users that come with it.

How can Novalnet help merchants accept Apple Pay?

At Novalnet, we can help you offer a seamless payment experience to your customers with Apple Pay. Our instant plugins help you integrate the payment to your web and app within minutes. You can choose an integration type (hosted payment page, direct API, plugin) that fits your business model. Novalnet also supports EMVCo tokenization and the major card schemes (Visa, Mastercard, Maestro, American Express, Diners, and Discover).
As a trusted partner for global brands, our technology lets you accept payments globally in 125+ currencies in 150+ automated country-specific payment methods. With our AI-based risk management solutions and advanced analytics, you can design the best payment experiences for your customers, and all of it in a fully secure environment. Speak to us to know more about how you can accept Apple Pay today.

Jose Augustine

Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.