Enhancing tap-to-pay capabilities for small businesses, a move initiated by Apple.
Apple has made a significant move into the small business point-of-sale (POS) market, with its new Tap-to-Pay contactless payment acceptance technology. This shift is largely due to Apple opening its Near Field Communication (NFC) technology to third-party developers.
The growing market for phone-based payment solutions, as suggested by Don Apgar, Director of Merchant Payments at Javelin Strategy & Research, indicates a demand for business capabilities beyond just payment acceptance. Apple's Tap-to-Pay service seems to be catering to a wider audience of merchants, including those who may require industry-specific features like waitlisting and inventory management.
In the crowded small business POS market, Apple's Tap-to-Pay competes with several key players. Square, Shopify, Clover, SumUp, Toast, Lightspeed, GoDaddy POS, and Fiserv are among the main competitors offering solutions similar to Apple’s Tap-to-Pay.
Square, for instance, is widely regarded as the best overall POS system for small businesses, offering a free, easy-to-use POS with fast setup and built-in payment processing focused on in-person sales. It supports contactless and mobile payments, similar to Apple Tap-to-Pay, by enabling NFC and tap payment acceptance.
Shopify POS excels for businesses needing seamless integration between online ecommerce and in-store sales. It offers a robust multichannel environment and contactless payments, although offline mode is a limitation.
Clover is another major player with flexible hardware and software POS solutions, customizable systems, and a strong app marketplace. Clover supports contactless payments and integrates well with its Clover Payments platform.
Other competitors like SumUp, Toast, Lightspeed, GoDaddy POS, and Fiserv also play important roles depending on industry-specific needs, pricing, and hardware preferences.
In summary, Square, Shopify, and Clover stand out as the most prominent competitors offering robust POS systems with contactless payment acceptance akin to Apple’s Tap-to-Pay. Others like SumUp, Toast, Lightspeed, GoDaddy POS, and Fiserv also play important roles depending on industry-specific needs, pricing, and hardware preferences.
Customers can pay using Apple Pay or other digital wallets with Apple's Tap-to-Pay service. The use cases for phone-based payments are expected to grow, with Don Apgar predicting that "tap-to-phone" will become increasingly popular. The recent boom in tap-to-pay technology has made it a serious competitor in the small business point-of-sale market.
Under Apple’s model, the company has no knowledge of what is being purchased or who is making the purchase. All payment data will be encrypted and processed using Apple's Secure Element technology, which secures Apple Pay transactions. Apple's Tap-to-Pay platform primarily targets merchants similar to those once served by Square and its signature dongles, such as local artists, gig workers, and sole proprietors who require a portable payments terminal.
The growing demand is for phone-based payment acceptance, particularly among a middle ground of individuals who need some business capabilities on their personal accounts. Apple's Tap-to-Pay service has launched in eight additional countries: Belgium, Croatia, Cyprus, Denmark, Greece, Iceland, Luxembourg, and Malta.
[1] https://www.pcmag.com/reviews/square-pos-system [2] https://www.shopify.com/pos [3] https://www.clover.com/pos-systems [4] https://sumup.com/us/pos [5] https://www.toasttab.com/pos/features [6] https://www.lightspeedhq.com/retail/pos [7] https://www.godaddy.com/garage/pos-system [8] https://firstdata.com/us/products/payment-solutions/point-of-sale-pos-systems/
- The expanding market for phone-based payment solutions hints at a growing demand for business features in personal accounts, a potential customer base that Apple's Tap-to-Pay service seems to cater to.
- Apple's competitors in the small business point-of-sale market, such as Square, Shopify, and Clover, also offer solutions with contactless payment acceptance, including Square's system that supports NFC and tap payment acceptance, similar to Apple Tap-to-Pay.
