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Almost three-quarters of smartphone owners (74%) in Canada made a payment using their mobile device over the past six months, according to Payments Canada. If you don’t already, it’s a good time to start accepting Apple Pay — and let your customers know that you do. Here’s the information you need to know about Apple Pay and how to accept it at your business.
What is Apple Pay?
Apple Pay is a mobile payment service that lets customers pay for purchases in stores, in apps and online using Apple devices such as an iPhone or Apple Watch. It works with existing debit and credit cards through the Apple Wallet.
Once you set it up, the service is accessible across all your Apple devices. For example, you can add a Visa credit card to your Apple Wallet through your iPhone and it will automatically sync to your Apple Watch. When you add your participating cards to your Wallet, you still get all the rewards, benefits and security features of your cards. You can check a full list of banks that participate in Apple Pay on Apple’s site.
In-person, you can use Apple Pay just like you would use a contactless credit or debit card, since it relies on the same Near Field Communication (NFC) technology as contactless cards, which allows a card or device to securely exchange information with a payment terminal when at close range.
Let’s say that you’re at a coffee shop and you want to pay for a latte with your phone. You’ll just need to hold it close to the card reader so it can detect your device. You’ll then be prompted to double-click the side button of your iPhone and either enter your passcode or use Face ID or Touch ID to authorize the transaction. You’ll hear a beep and see a notification confirming that the payment went through.
For online and in-app purchases, you simply select the Apple Pay button at checkout, which automatically fills in your card details before confirming the purchase. Can’t see the button? The merchant may not offer Apple Pay yet, or you may need to switch browsers, as Apple Pay only works with Safari.
How does Apple Pay work for business owners?
If you already accept contactless cards, you’re likely ready to accept Apple Pay in-person. To accept Apple Pay online or in-app, you’ll need ensure its integrated into your website or app before customers can select it as their payment method. Here’s some more information about how to accept Apple Pay wherever you do business.
Accepting Apple Pay in-person
To accept Apple Pay in-person, you need two things: NFC-enabled hardware, which is the same type of card reader or payment terminal you would use to accept contactless credit and debit cards, and a payment processor that supports digital wallet payments. A point-of-sale (POS) system like Square provides both.
You may also have heard of Tap to Pay on iPhone. This option allows you to turn your smartphone into a terminal for contactless payment methods like credit or debit cards and digital wallets like Apple Pay. All you need is an iPhone and a supported payment solution like Square to use it.
Keep in mind that people often mix up Apple Pay and Tap to Pay on iPhone, but they’re not one and the same. Apple Pay is what customers use to pay you, while Tap to Pay on iPhone is what you use to accept contactless payments on your iPhone.
Accepting Apple Pay online
To let customers pay with Apple Pay online, you’ll need to integrate Apple Pay onto your website through an API or checkout form. Square Online lets you build a mobile-friendly customized online store or add an eCommerce function to your existing website in minutes.
There’s no need to know how to code to incorporate Apple Pay into your checkout with Square Online, as you can just enable it as a payment method in your account settings page. Remember that customers need to be using Safari to access the Apple Pay button at checkout, even if you offer it.
Accepting Apple Pay in-app
If you have your own app, you can also integrate Apple Pay into the checkout experience. This does require developer involvement, but with a payment processor like Square, the work can be minimal. Square provides developers with built-in tools like APIs or SDKs to easily plug Apple Pay into an existing app.
Apple Pay and security
Apple Pay transactions are safe on all channels, as they rely on tokenization to safeguard payment data. This means that a unique “token” is used instead of the real card information, which is never shared or stored on your card reader, website or app.
Customers always have to use their passcode or biometric data (like a fingerprint) to authorize a payment, whether they’re tapping their devices in-person, making a purchase online or using in-app checkout. This makes unauthorized purchases unlikely, but card networks like Interac, Visa, Mastercard and American Express also protect cardholders against financial loss if someone uses their debit or credit card without permission.
Finally, with a POS system like Square, you benefit from increased security layers — and peace of mind — thanks to features like built-in PCI DSS compliance, end-to-end encryption and fraud monitoring measures.
Apple Pay transaction fees
Apple does not charge business owners any fees to use Apple Pay, whether you offer it in-person, online or in-app (or all three). While the service itself is free, you might need to purchase NFC-enabled hardware to accept in-person Apple Pay payments (Square Reader starts at just $69).
Standard processing fees still apply, which depend on the type of card used as well as your POS provider. With Square, you only pay 2.5% per in-person credit transaction, 0.75% + 7¢ per in-person Interac debit transaction and 2.8% + 30¢ for online payments.
Advantages of accepting Apple Pay for your business
Accepting Apple Pay doesn’t cost anything extra if you already have contactless payment hardware, yet it comes with many benefits for your business, from speed and convenience to the potential to boost sales.
- Speed: Digital wallets like Apple Pay are super-fast to process because customers don’t need to find their wallet or hand over a card. This is especially important for businesses that experience a lunchtime rush or have regular morning coffee line-ups out the door. If the line isn’t moving fast enough, people might opt to go elsewhere. The faster you can accept payments, the more money you make and the happier your customers are.
- Convenience: Convenience at checkout also keeps customers coming back — so much so that 58% of Canadian consumers wouldn’t return to a business that doesn’t offer a convenient way to pay, according to the Square 2025 Future of Commerce report. And the appetite for mobile payments is growing. Payments Canada revealed in-store mobile payments grew by 42% between 2022 and 2023, and wearable payments made with devices such as the Apple Watch grew 32% during the same period. Accepting Apple Pay and other digital wallets is becoming a must-have to cater to customer preferences.
- Security: Between biometric protection and the fact that the data associated with customers’ cards is tokenized, Apple Pay is a highly secure way to pay. Reputable payment processors like Square add their own security measures, and so do financial institutions and card networks.
- Increased conversion: If you sell products or services online, Apple recommends adding Apple Pay to product pages, the cart, your checkout page, in payment settings or anywhere else a user can select a payment method or initiate a purchase. There are different call-to-action buttons to choose from and the express checkout feature means that your customers can pay without typing any information. All of these options can help increase conversion and lead to more sales for your business.
- Brand credibility: According to Apple, contactless payments such as Apple Pay are already accepted at more than 90% of Canadian retailers. Being one of the few merchants who isn’t able to accommodate mobile wallet payments can hurt your brand. On the other hand, accepting Apple Pay helps your business look modern, especially in the eyes of Gen Z customers, who use mobile wallets more than any other generation, according to Interac.
How to start accepting Apple Pay at your business
Accepting Apple Pay is simple with the right POS system. Square provides an all-in-one solution to accept digital wallet payments in-person, online and in-app. It’s easy to set up and use even if you aren’t tech-savvy, and it adapts to your business needs, whether you need a portable card reader for your food truck or pop-up shop or a retail POS with multichannel inventory management. Here’s how to get started accepting Apple Pay payments with Square:
- Sign up for your free Square account.
- Choose your hardware, whether you go with a compact, versatile card reader like Square Reader or a countertop setup like Square Stand, which turns your iPad into a POS with a sleek swivel screen. Or skip hardware altogether with Tap to Pay on iPhone or Android.
- Follow the setup instructions to connect your hardware or download the Square app to enable Tap to Pay on iPhone or Android. You’ll be ready to accept Apple Pay in minutes.
- For example, to set up Square Reader, make sure the battery is charged. Press and release the button to turn it on, then open the Settings app on your smartphone or tablet and make sure Bluetooth is enabled. Then, open your POS app and go to More > Settings > Hardware > Square Readers. Tap Connect a Reader. Press the reader’s button for three to five seconds and remove your finger as soon as you see orange flashing lights. Tap Pair on the notification in your POS app to complete the pairing process.
- To set up Tap to Pay on iPhone, open your POS app and tap More > Settings > Account. Select Tap to Pay on iPhone and toggle Tap to Pay on iPhone ON. Verify the correct Apple ID is shown. If not, select Use a Different Apple ID. Tap Agree & Continue to turn on the service. To set up Tap to Pay on Android, check your device settings to make sure NFC is on. Then, open your POS app and tap More > Settings > Account and to turn on Tap to Pay on Android.
- Start accepting Apple Pay payments.
- In-person: Ask customers to hold their Apple devices near your POS or smartphone.You’ll see a green light or a checkmark and “Approved” message when the payment is successfully accepted.
- Online: Enable Apple Pay in your Square Online settings so customers can use it at checkout.They’ll see a confirmation that their order went through in their browser and you’ll see the order details in your Square Dashboard.
- In-app: Developers can add Apple Pay to your checkout through Square’s built-in APIs or SDKs. While the exact flow depends on the user experience of your app, you’ll see orders in your Square Dashboard.
How to inform your customers that your business accepts Apple Pay
Most Square hardware comes with stickers to display accepted payment types, including Apple Pay. Just place one in your window or near your POS to let customers know they can use their digital wallets. If you misplace your sticker, don’t worry — you can always order another one by logging into your Square Dashboard.
For online and in-app payments, customers will see the Apple Pay logo at checkout alongside all the other payment options available. To encourage people to use it, it’s a good idea to showcase that you accept Apply Pay on product pages, in your FAQs and even through your marketing channels like social media and email.
How to accept Apple Pay at your business FAQs
How do I accept Apple Pay?
To accept Apple Pay, you need a contactless payment terminal or an eCommerce platform with Apple Pay integration, as well as a payment processor that works with digital wallets. Square comes with both the hardware and software you need to start accepting Apple Pay right away. Square software is free, while hardware starts at $69. And you only pay a transaction fee when you make a sale.
Is Apple Pay secure for my business?
Yes, Apple Pay is a highly secure way of paying because it uses tokenization, a security method that protects payment data by replacing it with a unique “token” during transactions. Customers also authenticate purchases with Face ID, Touch ID or their passcode, which adds an extra layer of security. Plus, with a payment processor like Square, you benefit from added security like end-to-end encryption, built-in PCI DSS compliance and fraud monitoring.
Are there any fees for accepting Apple Pay payments?
Apple doesn’t charge businesses fees for accepting Apple Pay payments, but standard debit or credit card processing fees still apply. With Square, you only pay 2.5% per in-person credit transaction, 0.75% + 7¢ per in-person Interac debit transaction and 2.8% + 30¢ for online payments.
Does Square Point of Sale accept Apple Pay?
Yes, Square POS accepts Apple Pay. There are plenty of hardware options to accept digital wallet payments in-person and it’s easy to add Apple Pay to your online store with Square Online — you just enable it in your website settings with a toggle.
What is Tap to Pay on iPhone?
Tap to Pay on iPhone is a secure service that lets you accept contactless payments on your iPhone using a POS app like Square. To accept payments with Tap to Pay on iPhone, you need an iPhone XS or newer with the latest version of iOS. Once Tap to Pay is enabled in your POS app, you can enter a purchase amount to charge and have a customer tap their device or card to complete the transaction.
