PayPal was announced As “Tap to Pay” rolls out today for iPhone merchants through its Venmo and Zettle apps in the US, PayPal, which owns both Venmo and Zettle, says the feature will allow businesses to accept contactless card payments and digital wallet directly on their iPhones. at no extra cost or material. The launch comes eight months after PayPal introduced the feature for merchants with Android phones.
In addition to accepting payments from cards or digital wallets like Apple Pay or Google Pay, Tap to Pay allows merchants to add taxes, accept tips, send receipts and issue refunds without additional hardware. Funds from sales are quickly deposited into a business’s Venmo or PayPal Zettle account, the company says. PayPal charges 2.29% + 9¢ for each tap-to-pay sale on Zettle and Venmo.
With Tap to Pay on iPhone, Venmo business profile users will be able to reach customers by accepting payments from shoppers even if they don’t have a Venmo account. Merchants can manage both their Venmo transactions and their card payments directly within the Venmo app.
The official launch of the feature comes just months after PayPal began testing it through an early access program.
The launch of the new feature comes two years after PayPal rival Stripe became Apple’s first payments partner for Tap to Pay. A year later, Stripe enabled businesses to make Tap to Pay transactions on NFC-enabled Android devices as well. Stripe charges $0.10 per transaction for Tap to Pay purchases using the Stripe payment gateway, with additional fees for card and digital wallet payments.
As are consumers increasingly cashless, PayPal says Tap to Pay on iPhone will help millions of small businesses adapt to shifting consumer behavior by removing the need for merchants to purchase card readers.
