PayPal Introduces “Tap to Pay” Feature for US Businesses Using Venmo and Zettle on iPhone
Expanding Contactless Payment Options
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PayPal recently unveiled its latest offering – “Tap to Pay” – enabling US merchants to accept contactless card and digital wallet payments via their iPhones. This innovation is made possible through the Venmo and Zettle apps, both owned by PayPal.
Seamless Transactions with No Additional Costs
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The introduction of this feature marks a significant step forward for small businesses, allowing them to process transactions at zero extra cost and without requiring any specialized hardware. Previously, this functionality was only available to merchants utilizing Android phones since last year.
Enhanced Capabilities Beyond Card Payments
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Beyond just processing card payments, Tap to Pay offers various features such as adding taxes, collecting tips, issuing refunds, and sending electronic receipts. These capabilities aim to streamline the entire transaction process for merchants.
Reaching More Customers with Venmo Integration
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With Venmo business profiles now supporting Tap to Pay, merchants can broaden their customer base by accepting payments from individuals who may not possess a Venmo account themselves. Furthermore, merchants can effectively manage both their Venmo and traditional card payment transactions all within the Venmo application itself.
Timely Launch Amidst Competition
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This rollout follows several months of beta testing and arrives approximately two years after PayPal competitor Stripe established itself as Apple’s initial payment partner for Tap to Pay. Last year, Stripe expanded its support to include NFC-enabled Android devices. While Stripe levies a fee of $0.10 per transaction for Tap to Pay purchases, PayPal charges 2.29% + 9¢ for each sale processed through this feature on Zettle and Venmo.
As we move towards a predominantly cashless society, PayPal believes that Tap to Pay on iPhone will empower countless small businesses to keep pace with evolving consumer preferences by eliminating the necessity of purchasing physical card readers. Additionally, PayPal plans to introduce offline payment options once the Digital Marketing Association (DMA) regulations take effect.
