Everything you need to know about Apple Pay

What is Apple Pay, how does it work, and how can merchants integrate this payment method into their e-commerce store?

Apple Pay: A digital wallet solution for customers globally

As e-commerce has taken off, the popularity of digital wallets has grown with it. Mobile payments are a convenient way to make purchases without using cash or credit cards. They build a positive checkout experience – one-click or single-touch payments save time for merchants and customers, especially during holidays. Mobile payments also increase the security of financial transactions and simplify payment management for businesses. 


Merchants are implementing one-step checkouts using Apple Pay because consumers appreciate the convenience and speed this payment solution offers. The worldwide mobile payment revenue is expected to reach $12.06 trillion by 2027, and Apple has about 15% of the market share. Its security features, lowerower risk of card-present fraud, and speedspeed have made Apple Pay a leader in the mobile payment market. The steady uptick in usage makes Apple Pay a good investment for any e-commerce business. 

Apple Pay PayU

What is Apple Pay?

Apple Pay is a mobile payment solution and digital wallet service used by 250 million consumers worldwide. Officially released in 2014, Apple Pay helps merchants manage e-commerce websites easily by offering Apple Pay as a payment option. Supported devices include iPhone 6 and later models, iPad Air 2 and newer, iPad Mini 3 (and newer), MacBook Pro and MacBook Air, as well as Apple Watch-compatible devices.

Apple Pay supports major credit and debit cards such as American Express, Visa, Mastercard, and UnionPay. The company lists the banks supported by this feature on its official website for each country.

How does Apple Pay work?

Apple Pay uses a security protocol called EMV that utilizes a unique code for each transaction: Device Account Number (DAN). The code is generated using tokenization, so it’s not a real card number. Once the DAN is stored on a user’s phone, Apple deletes their credit card number from the database. 

When a customer payswith Apple Pay, they must verify their identity using Touch ID or Face ID. The DAN is sent to the merchant along with a unique transaction code to be approved and verified according to records saved on their phone. This method of authentication makes it more difficult for hackers to use copied card data because even if they try to decode and steal the DAN, it’s completely useless without the fingerprint needed to make payments. The customer needs to enter their card data only once, and then Apple Pay stores that data for future use.

Why do merchants and consumers use Apple Pay?

Integrating modern payment methods like Apple Pay isn’t just about keeping up with the latest technology trends. There are a number of good reasons why adding Apple Pay as a payment option is a great idea for both your business and customers.

Improved checkout experience

The most important advantage of using a digital wallet like Apple Pay is that consumers can store credit card details in the app for future purchases. They don’t have to enter payment data each time they check out. The payment process is faster and requires less effort on their part. If it’s easier for customers to make payments, there is a higher chance they will complete the order. 

When using Apple Pay, shoppers no longer need to fill in shipping, billing, or payment information. They simply click the “Apple Pay” button and check the purchase order before authorizing it with their fingerprint or face identification. 

Customers shopping in web channels won’t feel confused because they will only see the Apple Pay button if they are using a supported Safari browser and have a device compatible with Apple Pay.

Greater security

Apple Pay uses the latest technology to protect financial data during transactions. Apple assigns each added card an encrypted Device Account Number, which is then stored in the Secure Element – a dedicated chip that prevents unauthorized access. 

The customer’s actual credit or debit card numbers are never shared with merchants, minimizing the threat of data theft. Furthermore, every merchant is verified before financial transactions take place. When a buyer clicks “Buy with Apple Pay,” Apple first checks if you are a valid merchant who is authorized to accept Apple Pay transactions.

Reaching more customer segments

As of January 2021, there are 1 billion active iPhones and 1.65 billion Apple devices in active use worldwide. Accepting Apple Pay will give iOS users more options for paying with their preferred digital wallet app in your store.

Increasing competitiveness

Accepting Apple Pay is a great method to stay competitive in e-commerce, differentiating from competitors that don’t accept it. Offering Apple Pay as a payment option will help you retain more loyal customers who choose your business over your competitors. This helps to increase sales and boost customer engagement.

How can I start accepting Apple Pay?

Apple Pay is a mobile wallet supported by every payment gateway with a global reach and coverage of modern payment technologies. By partnering with a payment service provider like PayU, you can easily implement Apple Pay and start accepting it right away to provide the best possible checkout experience to your customers. 

Apple Pay FAQs (6)

In which countries is Apple Pay used?

Apple Pay is used all over the world by more than 250 million customers, and it’s one of the top 3 digital wallet technologies in use today. 

What are the requirements for merchants to accept Apple Pay?

Merchants need to have a compatible device and an Apple Developer account. Additionally, they must have a payment processing system that supports Apple Pay transactions. To ensure everything runs smoothly, merchants should regularly update their software to the latest version of iOS. 

How does Apple Pay handle customer data security?

Apple Pay does not store customer data on its servers. Instead, it assigns each card an encrypted Device Account Number stored in the Secure Element – a dedicated chip that prevents unauthorized access. Furthermore, all transactions are verified by Apple before completion, ensuring full security and privacy for customers. ​

Is there a fee associated with accepting Apple Pay payments?

Apple does not charge any fees for merchants to accept Apple Pay payments. Depending on the payment processing system used, there may be processing fees associated with transactions.

What is the customer experience like when using Apple Pay?

Customers have a simple and secure checkout experience with Apple Pay. They can easily select the Apple Pay option at checkout, authenticate the payment with Face ID or Touch ID, and then complete the transaction with a single click. This makes Apple Pay a great choice for merchants who want to provide their customers with an easy and secure payment experience.

Does integrating with Apple Pay take a long time to set up and initiate transactions?

No. Setting up Apple Pay is a straightforward process and depends on the payment gateway you decide to use. With the help of a payment service provider, transactions can be initiated quickly and easily.