One of the key aspects of having more consumers use contactless payment methods, such as Apple Pay, is encouraging people to take the step of making the first transaction. After that, the way to change payment behavior is by repetition. For consumers, having more opportunity to pay in a faster convenient way makes sense if there is universal acceptance. While Apple Pay has been accepted at chains and superstores for some time now with gradual adoption, having Apple Pay functionality accepted across a wider swathe of small merchants helps meet the pragmatic requisite of “learning” a new payment behavior.
The company said it hopes to “educate buyers and sellers” about the benefits of contactless payments, namely increased security and speedier transactions. For that reason, the promotion is aimed at sellers with a visible point of sale — like a countertop.
Mercator Advisory Group recognizes the benefit for both Square and Apple to expand the universe of Apple Pay accepting retailers. Doing so with the small businesses set helps create an environment of pervasive ability to use Apple Pay. The relative quicker speed of the Apple Pay contactless transaction to EMV Dip transactions is a big selling point on both sides of the POS counter. This coordinated effort will likely provide additional traction to the uptake of Apple Pay and the attractiveness for Square to small business during 2017. Are Apple driven incentives to use Apple Pay in Square-using merchants as part of a joint “buy local” campaign soon to follow?
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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