Have you ever stood in a long checkout line, dreaming of a world where transactions are nearly instantaneous? If so, Apple's latest innovation will resonate with you.
On Thursday, July 13, Apple unveiled a new feature for U.K. merchants: Tap to Pay on iPhone. This revolutionises the checkout experience, allowing businesses to accept Apple Pay and other contactless payments using only an iPhone. There's no need for additional hardware; all that's required is an iPhone and a partner-enabled iOS app. This transformative feature supports businesses of all sizes, ensuring a secure, private, and highly convenient payment method.
The timing for this launch couldn't be better. Contactless payments have seen a surge in popularity. Some key findings from the 2023 Global Digital Shopping Index: U.K. Edition, a collaboration between PYMNTS and Cybersource, include:
In 2022, 58% of in-store shoppers in the U.K. used a contactless card, a 94% increase from the previous year.
In-store digital wallet usage tripled year over year in England, with 20% of shoppers paying via this method last year.
Apple Pay usage skyrocketed, with 337% more in-store shoppers using it in 2022 than in the previous year.
Much of this growth is attributed to the increase in Apple Pay's spending limit. On October 15, 2021, Apple raised this limit from 45 pounds to 100 pounds. This expansion widened the pool of eligible purchases, contributing to the sharp rise in both Apple Pay and digital wallet use in the U.K.
Industry experts believe that Tap to Pay is the next disruptive innovation in the payment sector, reminiscent of the transformative impact of mobile point-of-sale (POS) systems 15 years ago. The latter empowered small and medium-sized businesses (SMBs) to accept card payments for the first time, and the former, Tap to Pay, holds similar transformative potential.
As we step into a new era of contactless payments, it's clear that technology will continue to reshape customer experiences in dynamic ways. As Apple's Tap to Pay makes transactions more seamless than ever before, consumers' expectations will only grow. Read more here