Ahead of the release of the latest generation of iPhones, Apple also unveiled a new mobile payment system that would allow consumers to make purchases using those new smartphones. Now, many experts wonder what the adoption rate among consumers will be, and how that will impact small businesses as a whole.
Currently, only about 10 percent of all retailers across the country have the ability to accept mobile payments on any kind of processing network, but it seems that the new Apple Pay option is spurring many more into action, according to a report from the New York Times. While acceptance isn’t widespread yet, obviously, major companies like McDonald’s, Subway, Macy’s, and Whole Foods have already committed to using Apple Pay from now on.
But the question is whether there will be adoption from smaller businesses, which, in terms of sheer number, dominate the marketplace, the report said. Experts generally agree that doing so would likely be a good idea, because they’ve long anticipated that a large number of consumers would start using this kind of technology regularly by 2015 or 2016, and that now seems to be something for which the marketplace is generally on track.
What’s needed?
For small businesses that might be thinking about accepting these payments, the good news is that the technology needed to do so is often pretty inexpensive, the report said. A good near-field communications payment reader can run anywhere from $250 to $500, and that’s something that may pay for itself in a relatively short period of time, particularly if consumers who are eager to use Apple Pay become aware of a store’s acceptance of it. Further, given that many credit card issuers have been pushing for more adoption of new card-reading technology that likewise uses NFC communication, doing this now might help businesses get ahead of other trends in the industry as well.
“[Adopting NFC credit card readers is] like upgrading from an iPhone 4 to an iPhone 6; you’re upgrading and getting many new things with that,” Donald Boeding, president of merchant services for the payment processing company Vantiv, told the newspaper.
Business owners who want to free up a little cash to buy these new payment processing terminals might want to consider the ways in which finding more affordable small business insurance can help them do so. For instance, they might be able to save thousands annually by investing in more affordable liability insurance.
