How Does Apple Pay Work?

Apple Pay has provided a mobile payment option since 2014. And it has steadily gained popularity in the years since. The convenience of paying with a mobile device appeals to a lot of consumers, along with the security benefits of leaving credit cards at home. So offering it as a payment option may help businesses increase sales with these customers.

How Does Apple Pay Work on iPhone?

Apple Pay lets iPhone users make payments in a variety of settings. They can pay in stores, online, in app stores, or even in messaging apps. To start, users must add a credit card to their device. Apple Pay is available on various devices, including iPhone, iPad, and Apple Watch. But card information must be added on each individual device before use.

Once the card information is added, you need to use a verified password or touch ID to use the feature. Some newer iPhones also have face ID for added security.

Setting up Apple Pay on iPhone

If you’re interested in using Apple Pay on your iPhone, you must first add a credit card, debit card, or Apple Cash account. You can even add multiple payment methods if you want multiple options. Here’s a step-by-step guide to setting up Apple Pay on iPhone:

1. Go to the Wallet app on your iPhone and tap the + button.
2. Enter your card information when prompted. If you already have a card added to your Apple account on another device, select that card and enter the security codes.
3. Some banks and credit card companies may prompt you to download their mobile app to verify your information.
4. Once you’ve gone through all the steps, submit and wait for your bank or card issuer to verify your card.
5. Once your card has been approved, you can use Apple Pay at all retailers and websites that accept it. Those that support Apple Pay generally include the Apple logo on or near their payment terminals.
6. You can also add extra cards to your account by repeating the steps above. If necessary, change your default card within Settings.

How do I use Apple Pay on my iPad?

Apple Pay works similarly on iPad as it does on iPhone. You start by inputting your card information within the Settings of your device. Then your card is saved and you can easily use it on qualified purchases. iPad Mini 3 and iPad Air 2 and all later devices come with touch ID to make purchases easy and secure. And iPad Pro 11- and 12.9-inch devices come equipped with face ID.

Of course, paying with an iPad isn’t quite as convenient as using an iPhone or smaller device on in-store purchases. But it is an option if you happen to carry a device with you. However, Apple Pay also works with other purchases like those made online or in apps. So that’s likely where you’ll use Apple Pay with an iPad most frequently.

Setting Up Apple Pay on iPad

Before using Apple Pay on an iPad, you must first add a credit card, debit card, or Apple Cash account. You can even add multiple payment methods if you want to have multiple options in your account. Here’s a step-by-step guide for setting up Apple Pay on iPad:

1. Go to the Settings app on your iPad and select “Wallet & Apple Pay.”
2. Tap “Add Card” and follow the prompts to input your card information. If you have cards added on other devices, select the one you want to use and enter the security code.
3. Submit your information and wait for your bank or card issuer t verify your information.
4. Once your card has been approved, start using the app to make payments online and in app stores. Websites that support Apple Pay generally include the Apple logo on the checkout page.
5. If necessary, add extra cards to your account by repeating the steps above. You can also change your default card within Settings if you’d like to pay more often with a different card.

How do I Use Apple Pay with Apple Watch?

Apple Watches also come equipped with Apple Pay functionality. This allows users to simply hold up their wrist to a payment terminal or similar device to complete payments. Basically, it just simplifies the process even more and provides payment options for those who don’t have an iPhone or credit card handy. The ability to easily use a watch for payments instead of money or debit and credit cards can eliminate a lot of purchase obstacles. Apple Watches also come with built-in security. So you must enter your ID or your passcode to access the Wallet app. However, these devices don’t currently have touch or face ID features.

You don’t set up Apple Pay directly on your watch. Instead, you must have a connected iPhone or other Apple device to access most of the features, including Apple Pay. So you can input your payment card or credit and debit cards in that app and then begin using your watch for payments.

How to Set Up Apple Pay on Apple Watch

If you’re interested in using Apple Pay on your Apple Watch, you must first add a credit card, debit card, or Apple Cash account. You can even add multiple payment methods if you wish. Here’s a step-by-step guide for setting up Apple Pay on an Apple Watch:

1. On your connected iPhone, open the Apple Watch app and go to the “My Watch” tab.
2. Select “Wallet & Apple Pay,” then follow the prompts to input your card information. To use cards that have already been added on other devices, select the relevant card and input the security code.
3. Tap “Next” and wait for your bank or card issuer to verify your information.
4. Once your card has been approved, you can use your Apple Watch to pay for purchases in stores that support Apple Pay. These retailers generally include the Apple logo on or near their payment terminals.
5. If necessary, add extra cards to your account by repeating the steps above. You can also change your default card within the Settings app on your iPhone.

Where can you use Apple Pay?

You can use Apply Pay online or use Apple Pay in stores. You can even use Apply Pay for your business. Here are some of the ways you can use this unique payment system just to get you started.

Using Apple Pay to Pay for Apps on the App store

You can use Apple Pay when purchasing apps in the App Store. Or you can use them for in-app purchases with your touch ID or your passcode. It’s even available for making payments for subscriptions for various Apple services like Apple Music, Apple News+, Apple Arcade, and upgraded iCloud storage.

Once you have Apple Pay set up on your devices, it’s one of the easiest ways to pay for apps and digital services. You already know that Apple devices and app stores accept Apple Pay. So you simply place your finger on touch ID or enter your passcode to easily pay Apple or other vendors within these digital marketplaces.

How to Pay on the Web

Many online stores and third party vendors accept Apple Pay for online payments. It works similarly to using a credit or debit card. But instead of manually entering the numbers from your American Express card, you can simply use touch ID or your passcode to pay with an approved credit or debit card instead of entering those numbers in manually. This allows users to avoid searching around for credit cards and slowly inputting their information. So it speeds up payments and provides a more positive customer experience.

To pay on the web, simply click the Apple Pay button when checking out. Then verify your billing, shipping, and contact information. To verify payment, place your finger on touch ID or use your passcode or face ID to verify the payment.

Using Apple Pay in Stores

Apple Pay offers an easy payment method for using a credit or debit card in retail establishments, restaurants, and gas stations. Since most people already carry their phones with them, this eliminates the need to carry extra debit or credit cards, or even cash. They can even use wearables like the Apple Watch. It’s also a fairly secure option, since you must place your finger on touch ID or enter a passcode to complete contactless payments.

Both iPhone and Apple Watch are perfect for this purpose. To use default credit cards, simply double-click the side button on your phone then enter your passcode or use face or touch ID. Then hold the top of your iPhone near the payments terminal just as you would with credit cards. Wait until a checkmark appears on the display.

How to Use Apple Pay for Business

Mobile wallet usage statistics are growing at an impressive rate across the board. Apple Pay currently has nearly 400 million users around the world, making it one of the most prominent mobile payment options. And there are more than 1.5 billion Apple devices in use. So the payments method is likely to grow even more. As a business, the ability to accept Apple Pay may increase your customer base. As more and more consumers stop carrying cash, debit, and credit cards, the places that accept mobile payments will draw in those payments.

Additionally, Apple Pay simplifies the payments process significantly, both in stores and online. This means your customers spend less time fumbling for cards or looking for payment information. Since these obstacles often lead to people re-thinking purchases, especially online, support for Apple Pay may lead to more completed sales. The ease may also save your team time as they collect in person payments at stores, restaurants, or other businesses.

To start accepting Apple Pay in stores, you need contactless POS terminal that works with Apple Pay. This generally works with any reader that accepts Discover debit contactless transactions. But contact your POS provider to find out for sure if your reader can accept Apple Pay. From there, display the Apple Pay logo at your payments terminal and anywhere you provide payment information to let customers know.

To use Apple Pay for online payments, choose an online payments provider that works with Apple Pay. These include popular options like Shopify, Squarespace, WooCommerce, Stripe, and Worldpay, among others. Or you can go to Apple Pay for Developers to configure your own payments system that will support Apple Pay.

Send and Receive Money

Accepting customer payments isn’t the only reason for businesses to use Apple Pay. It can also provide an easy and secure platform for your own transactions. In fact, Apple Pay allows you to easily send and receive payments in the Messages app of your iPhone or other Apple device. This can be useful if you’re texting with a client or sharing expenses with a colleague on a business trip. Instead of using a third party payments app or having to withdraw cash, you can simply send and receive money in the apps you already use.

To use this option, you must have Apple Pay set up with a credit or debit card. Then open your Messages app and start a conversation with the person you want to send money to. Tap the apps icon next to the text box and then click the Apple Pay logo. Enter the amount, click the send button, and then confirm your payment using your passcode, face, or touch ID. Users can also send you a request for payment, at which point you just confirm the amount and send the appropriate payment.

Alternatively, if a client or colleague sends you money using Apple Pay in the Messages app, you just need to accept the terms and conditions to receive payment. The money is automatically added to your Apple Cash account. There, you can spend it with Apple Pay, send it in another message, or transfer it to a connected bank account.

Make Contactless Payments

Apple Pay can also simplify the payments you make to vendors or other businesses in your area. Say you need to pick up some supplies for an even you’re hosting. While you’re running errands, you can quickly stop into a store in your area and make a payment with just your iPhone or Apple Watch. There’s no need to keep credit or debit cards on you at all times. And you can even use your Apple Cash card or account to complete payments with money you’ve recently received from others. This process is very straightforward; you simply hold your iPhone or Apple Watch up to a card reader to use Apple Pay. However, some countries and regions have imposed limits on how much you can pay at contactless terminals. Usually, if you exceed these limits, you just need to enter a pin or signature to complete your purchase. In the U.S., you may need to sign for Apple Pay purchases over $50.

In addition to contactless payments being a convenient option for your business purchases, it’s also secure. Face ID, touch ID, and/or your passcode are needed to complete purchases. So you can avoid carrying your credit and debit cards around with you, especially on business trips or at events where they may be tough to keep track of. And since Apple Pay allows you to add multiple cards, you can use Apple Pay for both business and personal purchases. But you don’t need to worry about your contactless purchases getting mixed up.

Check Your Transaction History

Apple Pay also makes it easy to keep track of your transactions. As a business, it’s important to monitor expenses for bookkeeping purposes. Without Apple Pay, most businesses need to go into their credit card and bank statements to find their full transaction history. This can be especially complicated if you use multiple credit and debit cards, along with other payment methods. Generally, you need to log into each of these accounts separately. And it may be difficult to track which purchases you made with each card or account.

However, Apple Pay allows you to monitor all of your activity in one place. You can add multiple credit and debit cards to your Wallet app to easily check activity in one place. Even if you don’t plan to use them all for mobile payments, adding them to your device can simplify your bookkeeping.

Additionally, Apple Pay can help you quickly identify and act on any fraudulent purchases. Once you add a card to your Apple Pay account, you can set notifications so you’re alerted when that card is used. Instead of having to monitor all of your accounts and reach out to merchants when you spot something fishy, you can act right away when you notice a purchase you didn’t make.

Benefit from an Apple Rewards Card

Apple Pay works with a huge variety of third party credit and debit cards from brands like Visa and American Express. But the company also offers its own Apple Cash Card option. You apply for an Apple Card like you would with a regular credit card. But then the information lives on your Apple devices. Benefits include no fees, security features like Face ID and Touch ID, and cash back.

If you use Apple Pay regularly, these rewards may help you avoid the interest and fees that you pay with other credit cards. Apple also encourages business users to pay less interest by providing information about paying off your balance. And there are no limits on daily cash back for qualified users.

Is Apple Pay secure?

Apple Pay is generally considered to be secure, thanks to features like touch ID and face ID. The program does store your credit card information on devices like your iPhone or Apple Watch. So it may be vulnerable if your devices fall into the wrong hands. But people would also need your passcode or biometric login access to actually retrieve this data. Additionally, Apple Pay can notify you on your iPhone or Apple Watch when your credit and debit cards are used. So you can quickly reach out to credit card companies if you notice any unusual activities.

Where is Apple Pay available?

Apple Pay was first rolled out in the U.S. So it is available on devices like iPhone and Apple Watch throughout the country. It is also available in Canada and select countries throughout Africa, Asia-Pacific, Europe, Latin America and the Caribbean, and the Middle East.

In terms of shops, Apple Pay is available through a huge variety of partner retailers in the U.S. and beyond. Some big names include Best Buy, Costco, Office Depot, Whole Foods, Target, CVS, and Staples. Independent retail businesses, restaurants, gas stations, and other businesses can also easily use Apple Pay as long as they have approved card terminals that support Apple Pay functionality.

Which cards are compatible with Apple Pay?

Apple Pay supports a huge array of credit cards, debit cards, and banks in various parts of the world. In the U.S., Apple supports all major credit cards including Visa, MasterCard, and American Express. It also supports Apple Cash and the Apple Rewards card. And you can use it with accounts from nearly all major U.S. banks. However, some banks do not approve card usage with Apple Pay. So contact your financial institution if you have questions.

How can you change your default card on Apple Pay?

In Apple Pay, your default card is the one you can easily use at retailers and online just with a quick double click of the side button and enabling touch or face ID. So it’s important to have the card you use most saved as your default. For businesses, this may mean adding your main business credit card that offers the best rewards.

You can use other cards within your account. But you have to actually open your device and select the correct card before completing your payment. So it’s a much simpler process if you have the correct card saved as the default on your iPhone or other Apple device. However, if you ever need to change this setting to another card at any point, here’s how:

1. Go to the Settings on your device and click “Wallet & Apple Pay.”
2. Scroll down to find the “Transaction Defaults” section and click the “Default Card” option.
3. Choose a new card from your list.
4. If you don’t have the card you want added to your Apple Pay on that device, add the card information before completing the above steps.

How many cards can I add to Apple Pay?

You can add up to 12 cards on new devices, including Apple Watch Series 3, iPhone 8, and iPhone 8 Plus and later models. On earlier iPhone, Apple Watch, iPad, and Macbook models, you can add up to eight cards on each device. You must add cards on each device, even if they’re connected to the same Apple account. So you can theoretically have different card options available on various devices.

Does Apple Pay work with US federal payment cards too?

Yes, these payment options are generally supported at retailers and sites that use Apple Pay. U.S. federal payment cards include those used for things like Social Security, GSA SmartPay, and veterans’ benefits. These are often provided through government-issued debit cards, which are generally supported through Apple Pay. You can see a full list of banks, credit cards, and payment options that support Apple Pay functionality here

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This article, “How Does Apple Pay Work?” was first published on Small Business Trends