The New Payment Method You Should be Accepting at Your Pop-Up Shop
Planning a pop-up this spring or summer? You should set yourself up to process EMV chip cards. That’s because under the liability shift (which went into effect in October 2015), businesses that aren’t accepting chip cards could now be on the hook for certain types of fraudulent transactions. And being saddled with unwanted charges at your pop-up is not ideal, to say the least.
But when you’re considering which point of sale (POS) to adopt at your pop-up, it’s a good idea to get one that can accept not only chip cards but also Apple Pay. Here are four reasons why you might consider accepting more payment methods:
It’s the fastest way to pay.
Moving your checkout line quickly is key to your pop-up’s success, especially when you have a rush. And if you’ve paid with a chip card recently, you’ve probably noticed that they’re pretty slow to process. In fact, they can take five to eight seconds longer than magstripe payments. This can drag things down, including your sales.
Contactless payments like Apple Pay, on the other hand, are super-simple, and incredibly fast. All customers have to do is hover their iPhone over the payments reader with their finger on the Touch ID button, and voila, the transaction is complete. A faster line means more sales in a shorter amount of time.
Accept Apple Pay and chip cards everywhere.
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We’re used to keeping our credit cards closely guarded. So it’s understandable that you might be a little apprehensive about using a mobile device as a vehicle for a transaction. But Apple Pay is actually extremely secure. In fact, it’s arguably the most secure way to pay and to process payments. Contactless payments like Apple Pay are authenticated, meaning there are several sophisticated layers of security built into the transaction. The technology works through a process called tokenization, which scrambles bank details into a “token,” a number that’s a stand-in for the credit card number. A different token is used for each transaction. All these security layers make it almost impossible for a fraudster to hack or extract any meaningful information. And as an added layer of security, Apple Pay is also protected by Apple’s fingerprint technology, Touch ID. So even if you lose your phone, you’re in the clear.
It’s poised to take off.
If you have a POS that can only accept credit cards and cash, you’ll probably have to buy a new one in the near future. That’s because Apple Pay (and NFC payments generally) is poised for mass adoption. BI Intelligence forecasts that U.S. in-store mobile payments will grow from $120 billion in 2016 to $808 billion by 2019.
This predicted surge is likely due to the fact that NFC mobile payments are a far better payment experience than EMV chip cards (while offering the same security benefits). We’ve seen this trend in countries that have already transitioned to chip cards. In Australia, 60 percent of transactions are now contactless. And in the UK, one in eight purchases in December 2015 used contactless technology.
It boosts your branding.
You’re hosting a pop-up, which means you’re already on point with the hottest retail trends. So why not update your POS to match that branding? Accepting mobile payments like Apple Pay will keep your business current with the latest and greatest retail technology. It’ll also provide customers with the most secure, seamless payment experience out there.
You’re probably thinking: Won’t getting a POS that can accept Apple Pay cost me an arm and a leg? Luckily, no. The new Square contactless and chip reader is just $49 and works with the mobile device you already have. It accepts EMV chip cards and NFC mobile payments, keeping your business both ahead of the curve and secure.
An Apple Pay Guide: Everything You Need to Know About Contactless Payments
The Ultimate NFC Guide: Everything You Need to Know About Near Field Communication
The Decline of Magstripe Cards—And What that Means for Your Business