Ecommerce Growth

Everything You Need to Know About Shopify Tap to Pay

Ecommerce Growth

Everything You Need to Know About Shopify Tap to Pay

Ever wondered how you can upgrade your Shopify payment process to meet the changing e-commerce landscape? As we know, customer expectations are increasing, and traditional payment methods are often seen as slow and cumbersome. To stay ahead of the game, businesses must adapt to changes and provide simple, secure, and efficient payment options. One such innovation that has revolutionized the payment process is Shopify Tap to Pay.

Shopify's Tap to Pay is an innovative feature included with every Shopify plan that smoothly integrates with your in-person selling process. This contactless payment system is a customer-friendly technology that uses near-field communication (NFC) to complete transactions. A customer simply needs to tap or hover their card or device next to a Shopify-enabled card reader to initiate the payment, saving valuable time and enhancing the overall shopping experience.

We at First Pier understand the significance of a seamless payment process and how it can significantly influence your online business profitability. With Shopify’s Tap to Pay, we believe that the future of optimized ecommerce is already here.

To help you get started, here's a quick breakdown of what you need to know about Shopify Tap to Pay:

  1. Device Support: Shopify Tap to Pay works on iPhone with Shopify POS installed. It requires an iPhone XS or later, and iOS 16 or higher.
  2. Shopify Payments: Stores in the United States that have Shopify Payments activated can use this feature.
  3. Transactions and Fees: Up to 100 transactions per month are free. After that, you'll incur a fee of $0.25 USD per transaction for the rest of the month. All transactions follow standard credit and debit rates from Shopify Payments.
  4. Simple Setup: The setup is straightforward. In your Shopify POS, simply head to Settings > Set up hardware, and select Tap to Pay on iPhone.

Infographic on Simplified payment process with Shopify Tap to Pay - shopify tap to pay infographic pyramid-hierarchy-5-steps

Stay with us as we delve deeper into each aspect of Shopify Tap to Pay and how it can help unlock new growth opportunities for your online store.

Understanding Contactless Payments

Before we delve into the specifics of 'shopify tap to pay', it's crucial to understand the underlying technology that makes it possible - contactless payments.

The Rise of Contactless Payments

Contactless payments have revolutionized the way we transact, providing a fast, convenient, and secure way to pay. Over the past few years, they've become second nature for many consumers, who now tap their cards, smartphones, or wearable devices at checkout terminals to make purchases. According to a CNBC report, over half of Americans now regularly use contactless payments, and more than two-thirds of credit and debit cards in the U.S. are contactless-enabled.

How Contactless Payments Work

Contactless payments use a technology called near-field communication (NFC). It's a short-range radio frequency that allows a payment terminal and a contactless card or device to communicate with each other securely and wirelessly. When an NFC-enabled card or device is held within about two inches of a payment terminal, it transmits a unique encrypted code representing transaction details. The terminal then sends this encrypted information to the respective banks for verification and, upon approval, completes the transaction.

Types of Contactless Payments

As technology evolves, more contactless payment methods are emerging. Today, customers can tap to pay using:

  • Debit and credit cards
  • Wearable devices
  • Smartphones

Each type of payment method uses NFC technology to communicate with contactless payment terminals.

Security Measures in Contactless Payments

One of the significant advantages of contactless payments is their security. Contactless payment systems offer greater security than cards that utilize a magnetic stripe, which are vulnerable to skimming attacks. In contrast, NFC-enabled cards, smartphones, and wearable devices use encrypted systems to transmit customer data, significantly reducing the risk of data theft and fraud.

Advantages and Limitations of Contactless Payments

Contactless payments offer numerous benefits, including speed, convenience, and improved security. However, despite their advantages, they do come with a primary limitation - a lack of universal adoption. While contactless-enabled terminals have become commonplace at major retailers, they are less common at small businesses running on tight budgets, meaning customers may still need to carry cash or a traditional credit or debit card.

Understanding the basics of contactless payments is the first step towards leveraging the power of Shopify Tap to Pay. In the next sections, we'll dive deeper into how we at First Pier can help you use this technology to boost your in-person sales and provide a seamless shopping experience for your customers.

Shopify Tap to Pay: A Game Changer for In-Person Selling

As retail continues to evolve, the trend of in-person selling is making a strong comeback. Brands are looking for cost-effective ways to engage with new customers, drive customer loyalty, and grow sales without sinking resources into online ads. This is where Shopify's Tap to Pay comes into the picture.

The Growing Trend of In-Person Selling

In-person selling provides a tactile experience that online shopping can't replicate. It allows customers to touch, feel, and see products in person before making a purchase. This is particularly beneficial for products like ceramics or handmade crafts, where the feel and look of the product are crucial to the buying decision. As a result, more and more brands are investing in in-person selling at local events, farmers markets, festivals, and pop-ups.

How Shopify Tap to Pay Facilitates In-Person Selling

To make in-person selling even more efficient, Shopify introduced Tap to Pay on the iPhone. This feature allows you to accept payments in person using just an iPhone and the Shopify POS app for iOS. You can accept contactless payments like physical debit and credit cards or mobile wallets directly from any iPhone with the Shopify POS app installed. The best part? You do not need to invest in a separate card reader or other additional hardware. This makes it easier for you to sell your products wherever your customers are.

Benefits of Using Shopify Tap to Pay for In-Person Selling

The benefits of using Shopify Tap to Pay for in-person selling are manifold. First, it allows you to start selling in person faster than ever. You can set up your point-of-sale without purchasing hardware, paying signup fees, or signing any long-term contracts. This is especially beneficial if you're an online-only merchant who wants to try in-person selling for the first time.

Second, it helps you connect with new customers, build relationships, and accept payments anywhere. As Daniel Vu Ceramics, a Shopify merchant, shares from his experience, selling at events regularly with the Shopify POS app and Tap to Pay on iPhone has helped his in-person sales account for 70% of his ceramics brand’s revenue.

Finally, the checkout process with Tap to Pay on iPhone ends each interaction on a high note. As Daniel explains, "[it] makes accepting payments feel more seamless, and I can just send their receipt by text or email."

How Shopify Payments Backs Tap to Pay Transactions

Each payment you accept with Tap to Pay on iPhone is backed by Shopify’s integrated payment processing. This means you'll get clear rates and quick payouts. To make the most of Shopify Tap to Pay, you'll need to set up Shopify Payments, a secure and reliable payment gateway that integrates directly with your Shopify store and processes transactions for both in-person and online sales.

In conclusion, Shopify Tap to Pay is a game-changer for in-person selling. By making transactions smooth, seamless, and efficient, it not only enhances the shopping experience for your customers but also boosts your store's sales. At First Pier, we're here to help you every step of the way, ensuring that using Shopify Tap to Pay becomes a transformative step in revolutionizing your retail experience.

Setting Up Shopify Tap to Pay on iPhone

Transitioning into contactless payments might seem daunting, but we assure you that setting up Shopify Tap to Pay on your iPhone is a simple and straightforward process.

Requirements for Using Tap to Pay on iPhone

Before you start, you need to ensure that you meet the necessary requirements to use Tap to Pay on your iPhone. Your store must be based in the United States and your store's currency should be set to USD. You should have Shopify Payments activated as your store's payment provider, and the Point of Sale channel should be installed in your admin.

You should also have the Shopify POS app installed on your iPhone. The app is compatible with the iPhone XS or newer models running iOS 16 or higher.

Step-by-Step Guide to Activate Tap to Pay on iPhone

If you meet all the requirements, you can then proceed to activate Tap to Pay on your iPhone. Here’s how:

  1. Open the Shopify POS app and tap on the settings icon.
  2. Navigate to the 'Set up hardware' option.
  3. Select 'Tap to Pay on iPhone' and tap 'Next'.
  4. Verify your Apple ID and accept the terms of service.
  5. Tap 'Done'.

Voila! Your iPhone is now activated for Tap to Pay and ready to accept payments.

Understanding the Checkout Process with Tap to Pay on iPhone

Once activated, accepting payments becomes a breeze. Your customers can simply tap their contactless credit or debit card or digital wallet on your iPhone to make a payment. For swipe or PIN payments, switch to another paired card reader.

Security Features of Tap to Pay on iPhone

Security is paramount when it comes to payments. Thankfully, Tap to Pay on iPhone comes with stringent security measures. It falls under the Stripe Terminal End User Terms, ensuring that your customers' payment information is secure.

Moreover, if your iPhone has had unauthorized modifications, Tap to Pay on iPhone might not be available until a given time to ensure the security of the transactions.

So, there you have it. With Shopify Tap to Pay on iPhone, you can not only provide a fast and convenient checkout experience for your customers but also ensure the security of each transaction. At First Pier, we believe in empowering businesses with the right tools and knowledge to thrive in the digital world. We're here to help you make the most out of Shopify's innovative features like Tap to Pay.

Managing Shopify Tap to Pay Transactions

Shopify Tap to Pay is not only about accepting payments quickly; it's also about managing these transactions efficiently. This includes understanding transaction fees, managing Tap to Pay on multiple devices, and troubleshooting common issues. At First Pier, we guide you through the process and make sure your business runs smoothly.

Understanding Transaction Fees and Limits with Tap to Pay

With Shopify Tap to Pay, the transaction fees are straightforward and predictable. Backed by Shopify’s integrated payment processing, Shopify Payments, you enjoy a clear rate for Visa, Mastercard, American Express, and mobile wallet payments—starting from just 2.7% + 0¢. There are no hidden fees, no monthly fees, statement fees, or chargeback fees. You only pay when you make a sale. This transparency lets you manage your finances better and plan your expenses accordingly.

Pairing and Unpairing Tap to Pay on Multiple Devices

Tap to Pay on iPhone can be paired with multiple devices logged into your Shopify POS account. This allows different devices to accept payments without having to enter an Apple ID or accept terms of service each time. If you want to remove Tap to Pay as an available card reader at checkout, you can unpair it. Unpairing doesn't deactivate it for the store, it only removes it from the device.

Deactivating and Reactivating Tap to Pay on iPhone

If you need to deactivate Tap to Pay on iPhone across all devices for your store and locations, it's as simple as navigating to the settings and choosing the 'Deactivate all devices' option. This won't disconnect or change your Apple ID associated with your store. You can reactivate Tap to Pay on iPhone at any time.

Troubleshooting Common Issues with Tap to Pay on iPhone

Even with the most advanced systems, there might be times when you face issues with Tap to Pay on iPhone. The most common step is to verify that Tap to Pay has been activated for the store. Also, ensure that you meet the requirements to use Tap to Pay on iPhone. If you're still facing issues, referring to the Tap to Pay on iPhone frequently asked questions can provide helpful insights.

At First Pier, we understand that managing transactions is as crucial as accepting them. With clear transaction fees, easy management of multiple devices, and simple troubleshooting, Shopify Tap to Pay empowers businesses to provide an easy and secure payment experience. Let's make your business future-ready with Shopify Tap to Pay.

Conclusion: The Future of Payments with Shopify Tap to Pay

We're now living in a world where contactless payments are not just a convenience, but a necessity. The ongoing global pandemic has accelerated this shift, with consumers and businesses alike seeking safer, quicker, and more efficient ways to transact.

Shopify Tap to Pay, a new addition to Shopify's robust suite of payment solutions, is at the forefront of this evolution. As we've explored in this article, Shopify Tap to Pay offers a seamless, secure, and fast way to accept payments, backed by the reliable Shopify Payments infrastructure.

At First Pier, we believe that Tap to Pay is not just a feature but a strategic tool for growth. It's a game-changer that can boost customer retention, drive repeat purchases, and enhance the overall shopping experience. For businesses looking to stay ahead of the curve, adopting Shopify Tap to Pay is a strategic necessity.

The convenience and security of Tap to Pay are amplified when used with iPhone. Setting up and managing Tap to Pay on iPhone is straightforward, and Shopify has put in place robust security measures to ensure that every transaction is secure.

But the future of payments doesn't stop here. As technology continues to evolve, so will the ways we pay. And as a Shopify Partner, we're excited to see what's next. We're committed to helping our clients navigate these changes and make the most of the tools and features Shopify has to offer.

In conclusion, whether you're a small business owner or a large retailer, Shopify Tap to Pay is an excellent investment. It's a step towards a future where payments are quicker, easier, and more secure. It's a step towards a future where businesses can focus less on transaction management and more on what they do best: providing excellent products and services to their customers.

The future of payments is here, and it's powered by Shopify Tap to Pay. Join us at First Pier, and let's embrace this future together.

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