With almost every product launch, Apple strikes gold. And its newest offering is no exception.
Apple Pay attracted more than 1 million new users in its first 72 hours alone. And the number of customers and retailers flocking to this revolutionary payment technology continues to soar with each day.
Maybe you’re thinking about updating your payment infrastructure as well.
In a previous article, we explored how much it costs to get Apple Pay up and running in your store. But in this article, we examine how much you might lose if you don't begin accepting Apple Pay.
The Hidden Costs of NOT Implementing Apple Pay
It's difficult to quantify real numbers. Apple Pay is still in its early stages. And every merchant has slightly different business needs. But below are some of the most important factors that every small retailer should consider.
1. Fewer Fraudulent Losses
Apple made security a central feature of its new payment system. With near-field communication (NFC) capabilities, Apple Pay allows customers to wirelessly complete transactions without handing over sensitive financial data at the cash register. The technology also comes with biometric verification, further boosting Apple Pay's security protection.
Depending on your business, these extra features can help you save anywhere from $0 to tens of thousands of dollars in fraudulent losses every year.
2. Lower Swiping Charges
Before launching Apple Pay, the company pre-negotiated lower fees with banks and credit card issuers. Although the exact numbers are still in flux, merchants are sometimes able to realize savings of 10 percent.
Is 10 percent a lot?
Again, it depends on your business. Look over last year's statements to see how much money you paid in credit card swiping charges. For some retailers, a 10 percent reduction might be a huge victory. For others, it's just a drop in the bucket.
3. Potential Loss of Revenue
Roughly 10 percent of Americans don't use cash at all, and 80 percent carry less than $50 at any given time. The check-carrying crowd is even smaller.
No problem, right? You already have credit card processing in your store. And your customers know to look for the Visa, MasterCard, Discover and American Express decals in your window.
But a new trend is emerging — one in which shoppers look for the NFC logo. Almost everyone carries their smartphone around, but wallets (and plastic) have become more or less optional. Without that NFC decal, your retail store might soon begin missing out on countless sales.
Keep in mind that even before Apple Pay went public, more than 220,000 retailers and restaurants across the country signed on to the payment technology. Many of these guys are your direct competitors — local shops and businesses right down the street.
As Apple Pay becomes even more mainstream, the competitive disadvantage of not displaying this logo will only increase.
Does Apple Pay Make Sense for Your Business?
Less fraud, lower fees and more sales. This is what you potentially lose by not incorporating Apple Pay into your retail environment.