PayPal declared that it would be introducing “Tap to Pay” for American retailers that have an iPhone and use the Venmo and Zettle applications. The functionality would let companies accept contactless card and digital wallet payments straight on their iPhones without any additional hardware or cost, according to PayPal, the company that owns both Venmo and Zettle. Eight months after PayPal first made the capability available to retailers using Android phones, the launch has taken place.
Tap to Pay enables businesses to take payments via cards and digital wallets like Apple Pay and Google Pay. It also helps them calculate taxes, take tips, send receipts, and give refunds—all without the need for extra hardware. The company claims that money from sales is promptly deposited into a company’s Venmo or PayPal Zettle account. PayPal charges 2.29% + 9¢ for each sale made using Zettle and Venmo’s tap-to-pay feature.
Users of Venmo business profiles will be able to connect with customers by taking payments from purchasers even in the absence of a Venmo account thanks to Tap to Pay on iPhone. Within the Venmo app, merchants have the ability to oversee both Venmo and card payment transactions.
The feature was first tested by PayPal through an early access program, then it was officially launched a few months later.
Two years after competitor Stripe, a payment processor to PayPal, became Apple’s first Tap to Pay partner, the new feature is now live. An additional year later, Stripe made it possible for companies to conduct Tap to Pay transactions on Android smartphones with NFC capabilities. Using the Stripe payment gateway, Stripe charges $0.10 per transaction for Tap to Pay purchases. Additional fees apply for payments made with cards and digital wallets.
According to PayPal, Tap to Pay for iPhone will assist millions of small companies in adjusting to the changing consumer landscape by eliminating the need for retailers to buy card readers at the same time that consumers are becoming more and more cashless.
