Square Offering $350 of Free Processing Fees to Small Businesses Supporting Apple Pay

[MacRumors]

Electronic payments company Square today announced a new partnership with Apple that will allow small businesses to obtain free processing fees with Apple Pay and compatible Square Readers. Starting today, eligible small businesses across the U.S. will have the chance to process over $12,000 worth of Apple Pay payments for free (based on the 2.75 percent contactless transaction fee charged by Square), totaling $350 worth of savings in Square processing costs.

To receive the free processing discounts, merchants will have to order a discounted $29 Square Reader, which comes with a free Apple Pay marketing kit. The kit includes various stickers and marketing ephemera that promotes the businesses' support of Apple Pay, as well as staff training materials. Once the merchant has their counter set up with all of Square's marketing kit display material, a simple picture sent to Square will then allow the business to start processing Apple Pay transactions for free.

In the press release, Square mentioned that it hopes the new small business-focused effort will continue to educate both business owners and customers about the benefits of Apple Pay. After a focused campaign by Square took place in Portland, contactless payments "tripled over the course of the campaign." On Apple's side, the company is constantly adding new financial institutions and retailers to its Apple Pay "Where to Use" page, encouraging growth of its mobile wallet since its launch in 2014.

Increased awareness for Apple Pay is also driving traction at major festivals and events. Across Kanye West's Life of Pablo pop-up shops in August there was significant usage of contactless transaction in cities across the U.S., from San Francisco (28%), to Dallas and Houston (both 14%). Together with Apple Pay, Square is taking this approach nationwide to help move the payments industry forward through initiatives that educate sellers and customers.

"It's no secret that chip cards can be slow, which is why we built our reader to also accept contactless payments, a faster and safer way to pay," said Jesse Dorogusker, Square's Hardware Lead. "Anything we can do to make a seller's experience faster and safer, including working with Apple to encourage Apple Pay usage, is an investment worth making."

For each business taking part, today's offer lasts until the business reaches the $350 cap of free Apple Pay processing fees, or a year passes from the time they enroll in the offer, "whichever occurs earlier." After either of these contingencies is reached, the standard processing fees will begin to apply. Merchants have all year to take advantage of Square's offer, with enrollment deadlines hitting December 31, 2017.

Square updated its line of payment solution devices in 2015 with a reader that supports NFC payments, letting locations which previously could not support Apple Pay -- due to the lack of a required contactless reader -- begin allowing customers to pay with the service. Apple has supported the Square Reader since early 2016, when it began selling the NFC reader both online and in Apple retail stores for $49.

Article Link: Square Offering $350 of Free Processing Fees to Small Businesses Supporting Apple Pay

 

[_mdavenport]

This is good news, hopefully it accelerates Pay adoption.

Also makes me wonder why Apple hasn't done any sort of Pay promotion to encourage adoption, like a $5 iTunes gift card for signing up and completing 5 transactions.

 

[redscull]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

 

[craigmak]

This is good news, hopefully it accelerates Pay adoption.

Also makes me wonder why Apple hasn't done any sort of Pay promotion to encourage adoption, like a $5 iTunes gift card for signing up and completing 5 transactions.

Wells Fargo gave me $20 to use Apple pay, when it was first rolled out. It would be nice if they brought that back.
[doublepost=1485801627][/doublepost]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

I find it easier. I have a 3 year old and putting my watch next to the terminal is much easier than my phone or pulling out my wallet. About half of the places I frequent use apple pay. Just need my gas station and grocery store and I would use more frequently.

 

[tmiw]

Hopefully free processing will be a stronger motivator than the chip card liability shift. A lot of smaller places simply don't see the point of buying a $49 device to prevent fraud that they likely don't get (or are perfectly fine with eating the costs of in the name of faster transactions, etc.).

 

[dontwalkhand]

I love Square. They also have the fastest chip readers on the market. Insert and remove pretty much right away!

 

[djlythium]

This is good news, hopefully it accelerates Pay adoption.

Also makes me wonder why Apple hasn't done any sort of Pay promotion to encourage adoption, like a $5 iTunes gift card for signing up and completing 5 transactions.

Word. Actually, that'd be a great promotion.

 

[EdT]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

For me it's the 3 times I had to get a new credit card and number because the merchant's account was hacked. Twice it was Target. Both times I bought something there before Christmas and after doing so Target announced that their system had been compromised and a week later my bank said my number was one of the accounts stolen. After the 2nd Target hack I asked if I would have to change my card if I had paid with Apple Pay, linked to that account. I was told no, the account information is not included when you use Apple Pay and the number that is used is a one time only number. This was the bank telling me this, not Apple. I also can use Apple Pay for Uber or Lyft car rides.
Edit-Target had initially announced that they would support Apple Pay but ended up not accepting it. I basically have quit going to Target because of their (lack of) security.

 

[Nicksd84]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

Disagree. The line build up during lunch because of waiting for chip cards to read is ridiculous at my work. Meanwhile, apple pay is boom and done-zo

 

[campyguy]

The backstory about focusing on Portland finally explains to me why Apple Pay options in Portland are in more locations recently. I'm spending more time in Seattle and the WA Coast but travel to Portland to meet with my business partner and attorneys, and I was able to use AP for two lunches, new wiper blade replacements for my Benz and my mom's Toyota, groceries at 3 stores (I keep a cooler with ice packs with me when I travel! - food is my favorite 4-letter word…) - and a few other locations before heading north, and I couldn't recall busting out a card more than once. That one time I used a card was at Costco, and the lines there are a PITA anyway - and they don't use chips yet. Going back to Seattle was a bit of a different story, waiting in lines for chip card users and I resemble that remark - it's almost faster to use cash…
[doublepost=1485811203][/doublepost]

Disagree. The line build up during lunch because of waiting for chip cards to read is ridiculous at my work. Meanwhile, apple pay is boom and done-zo

Agreeing with your disagreeing. From my previous post, the recent deployment focus on PDX really seemed to make Apple Pay and Samsung Pay and Square available pretty much everywhere I went in Portland, and now it's back to the slog in Seattle. Not even needing to double-press the Home button on my iPhone at AP terminals got me out of the queue even faster than ever…

 

[squirrelist]

I've been impressed with the adoption rate on Apple Pay recently. In the DC area it seems to be the norm now. Whole Foods, Trader Joe's, Giant (our regional supermarket), and even many of the local independent markets take it. And both of my nearby liquor stores take Apple Pay. Mind you, many don't actually say Apple Pay anywhere in their stores or on their registers, but they have the NFC logo, which is just the unbranded Apple/Android Pay.

I even found a BP with Apple Pay at the pump recently, which is far more convenient than ExxonMobil's payment app: fumble for your app, scan the barcode on the pump, wait for the authentication, wait for the pump to activate, hope it goes through because about 3 or the 6 times I tried it it just timed out...

Apple Pay is especially easier to use on the newer models because every year Apple improves the reliability of Touch ID quite a bit.

 

[redscull]

Disagree. The line build up during lunch because of waiting for chip cards to read is ridiculous at my work. Meanwhile, apple pay is boom and done-zo

See this makes me wonder what's wrong with where I try it. Because Apple Pay is on-average slower than the chip reader. Apple Payers end up holding up the line getting the device and the reader to notice each other while credit card is just in and out done. If Apple Pay worked consistently, it might be different. But it doesn't. Whereas the credit card always works in the exact same amount of time, every time.

 

[Digital Skunk]

Apple Pay was one of the major reasons I switched from my PERFECT Galaxy Note 2 to an iPhone 6 Plus.

Happy I made the decision, never looking back, and have been using Apple Pay whenever and wherever possible.

As a former denier, I can say that iOS, even with its minor issues, has only gotten sweeter over time.

 

[GTDaveMac]

See this makes me wonder what's wrong with where I try it. Because Apple Pay is on-average slower than the chip reader. Apple Payers end up holding up the line getting the device and the reader to notice each other while credit card is just in and out done. If Apple Pay worked consistently, it might be different. But it doesn't. Whereas the credit card always works in the exact same amount of time, every time.

User error? If someone has to ask the cashier if they take ApplePay, there is almost always confusion. Is this what you are talking about? Either they need to be trained better or the systems need to work consistently. In almost every case if there is an NFC logo, the USER just needs to know they can put their phone up to it and it will be recognized. Not even a need to unlock the phone or open the Wallet app. Just put your finger on TouchID to approve. In fact, just holding your locked phone to any reader is a good way to determine if their NFC/ApplePay is active.

Actually, I have been in one store that has a generic looking card reader/printer that has an NFC logo and they take ApplePay, but you have to tell them and they enable the NFC. This is unusual and adds an extra step to the process. Everywhere else, if I see ApplePay or NFC logo, the transaction is faster than a chip card.

 

[JohnApples]

When Apple Pay works— it's awesome. It's extremely fast (especially compared to the chip reader) but also secure. Plus I almost always have either my AW on or my iPhone in my hand at the cash register.

The problem is that I have to say "when" it works. Sure, ApplePay needs lots more stores to adopt it. But the real issue, in my opinion, is having stores that DO support it, but don't work half the time.

My local Subway has the AP symbol on the terminal, but it refuses to accept the NFC payment. Meijer will accept ApplePay... if I use Discover but for some reason not any of my other cards. I also still have to sign my name and wait for it to process as a "chip" transaction. OfficeMax will only accept NFC payments if you tell the cashier and they have to tap tap tap something on their end in order to get the terminal ready, defeating the purpose.

That said, it has improved a ton since its introduction in 2014. There's still a lot of ironing-out to do though and I hope Apple pushes it hard with incentives for businesses to adopt and streamline it.

 

[alien3d]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

As developer, i thinking to buy apple watch so i can test via web , apps which i build now.. In my country(Malaysia), A similar concept payment card wireless call "Touch And Go " much easier or in Japan call "FELICA".The most i think wareable like apple watch will be continue as payment method while i don't think phone should be suitable at all. Who want to show off iphone 7 few grand to make payment few buck?

Now most in my country support "Touch And Go","Pay Wave Visa","Mastercard also Got".So the competition for Apple Pay,Samsung Pay.. Quite long time Ago.. For buying in apps via telco.. Google pay allready can deduct account from prepaid and postpaid..
Apple will be tough time if outside United State.

 

[adnbek]

I still don't understand the hoopla over Apple Pay. Not much around me even supports it, but the Subway does where I occasionally have lunch. And so my only experience with Apple Pay is there.

Both my Apple Watch and iPhone struggle with "talking" to the reader thing without multiple waving around and touching them together attempts. And pressing the buttons to start the whole process is no less effort than whipping out the card which is then 100% first attempt successful at inserting into the slot to pay. And the card concludes at least as quickly as an Apple Pay transaction. So in short, I quit using Apple Pay. It takes more actions and time and hassle than using a credit card.

Now, I do like Apple Pay on the web. Because that truly has no hassle and doesn't require me to then scan or type in credit card numbers. It's cool there. But in person? Nope. Just a hassle.

The hoopla is due to the security. When you use your debit or credit card directly whether it be by tap to pay or through the chip, your actual card number gets transmitted. If the system is compromised, your card can easily get cloned after. I've had to replace credit cards on multiple occasions due to fraud.

With Apple Pay, a one-time unique token is sent instead, so the transaction is 100% secure. I use Apple Pay more often than my actual cards now. And it's faster too.

As for the trouble you're having, you must be doing something wrong. Works flawlessly for me and others I've seen use it.

 

[Nicksd84]

See this makes me wonder what's wrong with where I try it. Because Apple Pay is on-average slower than the chip reader. Apple Payers end up holding up the line getting the device and the reader to notice each other while credit card is just in and out done. If Apple Pay worked consistently, it might be different. But it doesn't. Whereas the credit card always works in the exact same amount of time, every time.

Yea. Agree there may be some user error issues. I double tap and bring up my cards before getting to the register. Average iPhone user isn't going to know that and usually is clumsy to get their phone up.