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The Dutch payment processor will enable its retailers to use iPhones to accept contactless payments without the need to purchase a POS terminal.
The iPhone Tap to Pay simplifies in-person payments at stores by removing the dependence on payment hardware to accept transactions and will provide “a complementary way to accept payments for line-busting”, according to Adyen.
This means that retailers can reduce wait times and checkout queues by meeting the customer at the place in line and processing their sales on the spot.
With its easy installation and quick onboarding, Tap to Pay will allow businesses to scale up their payment operation and provide safe and fast checkout experiences that increase mobility on location.
Transactions are encrypted and payment data is “protected by the same technology that makes Apple Pay private and secure”, according to the payment processor.
Adyen officially launched Tap to Pay on iPhone for US businesses on July 12.
The new feature will be available at merchants of NewStore, such as Vince and Burton, and New Black retailers including G-Star and Scotch & Soda. It will also be made available directly to retailers and platforms including Nike, Lightspeed Commerce and Fresha.
“This new capability will change how consumers and businesses view mobile payments,” said Kamran Zaki, COO at Adyen.
“Tap to Pay on iPhone is easy to use, and leverages the built-in security features of iPhone to keep your business and your customer data private and secure,” he added.
“The biggest advantage of this feature is it eliminates our dependence on traditional payment terminals, which means we can now offer an even more seamless and secure way to accept payments,” added Brian McAllister, director of global operations at Burton.
Apple first announced its plans to introduce Tap to Pay on iPhone in February. The solution allows US merchants to accept payments via Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap on their iPhone.
The technology giant said it will allow payment platforms and app developers to integrate Tap to Pay into their iOS apps and offer it as a payment option to their business customers.
Stripe was the first payment platform to offer Tap to Pay on iPhone to its business customers, including the Shopify Point of Sale app. It is currently available through the Stripe Terminal SDK as part of a closed beta program in the US.
Frictionless payments to drive sales
Frictionless payments is an industry buzz-word that is generally associated with consumer demand and end user experience. But for retailers, it is essential to increasing conversion rates and driving sales.
Removing customer payment frictions and increasing footfall in stores is something retailers have been attempting to improve ever since the first self-service stores emerged in the early 20th century.
Queues cost retailers money to operate, can damage sales and lead to poor customer experience. Although innovations, such as contactless, have successfully sped up and added convenience to the process of navigating the checkout, it has not entirely solved the problem.
Ideas such as “line busting”, additional sales staff armed with their phone intervening to reduce queues at the checkout, is just one example of how Apple’s new Tap to Pay can support this process.
It can also allow sales conversions to be made in the moment, removing delays for the customers, but also reducing the danger that they may change their mind.
Previous research carried out by Adyen in 2019 claimed that long checkout queues cost UK retailers £11bn ($13bn) in lost sales each year, while in the US the acquirer says this figure is $38bn.
It is also notable that Adyen expressly describes Tap to Pay as a complementary solution to traditional POS solutions rather than like-for-like alternatives. Given the cost of an iPhone, this is perhaps unsurprising, but it also highlights the changing retail environment and the increasing focus by retailers on introducing greater flexibility to the payment experience.
According to GlobalStats, Apple's iOS accounted for 57 percent of mobile operating systems in the US as of June 2022.
As consumers continue to return to in-store purchases, retailers, particularly those with a greater offline presence, will be looking to create more seamless and flexible payment experiences to win-back, retain and expand their customer base.
