Consumers are becoming increasingly comfortable with conducting transactions on their smartphones and other mobile devices, as evidenced by the rapid growth of Apple Pay since its launch in October 2014. With the expected continued expansion of Apple Pay in 2015, it is important that self-service checkout systems, such as interactive retail kiosks, are outfitted with mobile payment options.
Why Integrate Apple Pay™ with Your Self-Service Retail Kiosk?
The self-service kiosk industry grew 24% globally in 2013. It is projected to continue this growth trend for at least the next five years. Increasingly, consumers are not only open to the idea of using a self-service checkout option, such as an interactive payment kiosk, but as the general public’s comfort level with these self-service technologies grow, consumers often demand a self-service checkout option due to the convenience and speed of checkout that these technologies provide. Want to Connect With Customers? Think Mobile Integration First!
88% 18 to 29 year-olds own a smartphone
94% of smartphone users look for local information on their phone
84% take action as a result, such as making a purchase or conducting business
17% use a smartphone to assist with shopping at least once a week
62% use a smartphone to assist with shopping at least once a month
79% of smartphone owners are smartphone shoppers
83% rely on their mobile device for dining decisions while traveling
The Growth of Apple Pay™
Recently, Apple announced that over 200,000 new self-service machines, including parking meters, laundry machines, and vending machines, are now integrated with Apple Pay. Since launching in September, Apple Pay has already become the most popular mobile payment method available. Apple Pay continues to add financial institutions to its roster of integrated payment providers, and now is integrated by over 750 banks and credit unions. This upward trend is apparent in two major national retailers that were early adopters of Apple Pay technologies. Panera Bread reports that Apple Pay comprises over 80% of the restaurant chain’s mobile transactions. Whole Foods, another early Apple Pay adopter, has reported that mobile transactions have increased more than 400% since Apple Pay was made available to their customers three months ago.
Apple Pay™ & Interactive Kiosks
The next wave of major innovation to self-service kiosk solutions is the integration of mobile payment solutions, such as Apple Pay. Easy to Use / Easy Payments Consumers can store credit and debit cards in a mobile wallet and make in-kiosk and in-app payments with their iPhone 6 and iPhone 6 Plus. Consumers can check out via thumbprint activation on their iPhone at NFC-enabled POS devices or through merchant’s Apple Pay™ enabled mobile app.
How Does Apple Pay™ Work?
Apple Pay is extremely easy to use and fast to process a transaction, which is one of the key reasons for its rapid rise in popularity. The system works by having the user simply tap an iPhone to a payment machine and then the user touches their phone’s fingerprint sensor to authorize the transaction.
Consumer activates payment service on device via Apple Pay™ App.
Apple will collect new card data from consumer or confirm payment credentials from consumer’s iTunes account.
Apple initiates the request for a token by sending the Primary Account Number (PAN) information to the association.
Association (Bank) confirms issuer participation and performs risk analysis.
Based on a decision, association/issuer generates a token from the assigned token BIN and responds back to Apple to provision inside the device and activates.
The rapid rise of Apple Pay and its expected continued growth in 2015 means that consumers are getting more and more comfortable with paperless payments, which also means that more consumers will look for self-service checkout options integrated with this new payment technology. As a result, it is important for retailers to provide self-service payment kiosks, such as interactive kiosks, that are outfitted with the latest payment technologies to meet this growing consumer demand for mobile payments.