With the release of Apple Pay, many companies are unsure how and when to make the transition to the new payment method – or even if they should at all. Many corporate giants adopted the strategy, like Macy's, McDonald's, Whole Foods and Subway, according to the New York Times. Small businesses have been slower to adopt the system, as many wait and see how the market and consumer base responds.
For small companies looking to make an impact and bring their business to the next level, Apple Pay could be a good way to gain attention, open business to early adopters and boost sales.
Small businesses should have no trouble integrating
Gartner analyst Mark Hung told the New York Times that less than 10 percent of American retailers have the necessary near-field communications (NFC) reader for Apple Pay to function. The number of small companies with the platform figures to be even lower, considering the aforementioned brand names included in that 10 percent.
However, outside of the costs for the readers, there are no other overheads for Apple Pay – beyond the standard fees credit card merchants already impose. Small businesses can find quality readers for $300 to $500.
Pete Donat, senior vice president of payment-processing firm First Data, recommended small businesses implement Apple Pay while they are still small.
"When businesses get larger and have more comprehensive solutions, then integration gets more complex," Donat told the New York Times. "For small business, their point-of-sale provider will help them."
Donat explained that companies interested in Apple Pay fall into three categories: "Those who actively want to use it, those who are exploring it and those who want to wait and see."
Apple Pay facing competition
Merchant Customer Exchange, a group of major retailers like CVS, Rite Aid and Wal-Mart, are pushing their own NFC-style payment option called CurrentC, Business Insider reported. The system is in beta testing and could be ready for launch next year.
CVS and Rite Aid have both disabled Apple Pay in their stores in what would seem a move to make room for CurrentC. But as it stands, that payment method is unlikely to gain the sort of traction of Apple Pay, which has perhaps the most influential device brand name on Earth attached to it.
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