Will Apple Pay make Consumers Believe in NFC?

Oct 21, 2014

Apple Pay has gotten a lot of press lately. The new payment platform by Apple, allows for consumers to pay for products just by holding their phone up to a merchant terminal and clicking ok. Equipped with an intuitive interface and the ability to be used with multiple devices (Apple Pay is available on iPhone 6, iPhone 6s, and iWatch) even many U.S. banks have rallied behind the platform, hoping that Apple’s strong brand recognition makes consumers perform more credit transactions. Yet the technology behind Apple Pay is not nearly as new and shiny as the platform, but it is still turning heads.

Near Field Communications (NFC) technology is what drives Apple Pay. NFC is a contactless, Wi-Fi like technology that identifies the user and the user’s bank account to a specific terminal. This short range frequency transfers small amounts of data between devices like a smartphone and retail terminal, by only being a few centimeters away from each other.

A recent poll by The Wall Street Journal shows that 37% of U.S. adults who use mobile payments, favor NFC. Apple is hoping to exploit that trend and use the power of its brand to encourage others who do not use mobile payments to select NFC as well. Still Apple faces a basic problem, despite all the hype that Apple Pay has received over the past year. The majority of Americans still don’t trust making payments using their mobile devices, citing security concerns. And only 10% of merchants have adopted NFC despite a majority of them being aware that the technology exists.

Perhaps the brand recognition and pure allure of Apple Pay will be enough to get Americans, and the world, behind the idea of the “digital wallet.” A recent Nielsen report asked Americans if they would use a device to shop at a physical store, and 41% said that they would, a few points higher than those that answered no. Apple is scheduled to release Apple Pay at the end of the year.

Vitamin Supplement Merchant Account with eMerchantBroker.com

Apple Pay may accelerate the adoption of the digital wallet. High risk businesses like vitamin supplement merchants, can benefit from the convenience of fast NFC payments in vitamin shops across the country. However, they will still need a competent payment processor to enable those payments.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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