Apple launches Tap to Pay in Australia

Apple has today launched Tap to Pay on iPhone in Australia, which they say empowers local businesses of any size to accept in-person contactless payments on iPhone using a partner-enabled iOS app. This move will rival Square and other POS systems.

The capability was launched last year in the United States.

According to a blog post by Apple, Merchants can enable Tap to Pay on iPhone through a supporting iOS app, such as Westpac’s EFTPOS IOS Air app on an iPhone Xs or later device running iOS 16.4 or later. Once enabled, merchants will simply prompt customers to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant’s iPhone, and the payment will be securely completed using NFC technology. Tap to Pay on iPhone also supports PIN entry, which includes accessibility options.

“Australia is a nation of entrepreneurs and innovators, and small and medium-sized businesses are at the heart of the country’s workforce, employing millions of Australians. Now, with Tap to Pay on iPhone it’s easier than ever for businesses of any size to seamlessly accept contactless payments using only their iPhone, wherever they do business,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “The convenience of Tap to Pay on iPhone empowers Australian businesses to offer easy, secure, and private contactless payment experiences to their customers, and help them run and grow their business.”

Westpac and Tyro Payments are the first platforms in Australia to enable the payment method. With ANZ set to follow in the coming months along with Stripe, Till Payments, and Zeller.

Westpac’s business owning customers can use Apple Tap to Pay with a business transaction account, and then must apply for an EFTPOS Air merchant facility then download and set up the free app. Tyro Payments users can apply for a Tyro BYO account then download and set up the Tyro BYO app.

While there are no hardware costs, there will be associated fees for the service for merchants. Westpac has confirmed it will charge a flat fee to businesses accepting payments with mobile phones, as part of the overall cost of using its payment services and banking software. Merchants or sellers will pay a 1.4 percent fee for Apple Tap to Pay transactions made through either Westpac or Tyro’s platforms, while it’s a flat rate with Westpac, Tyro Payments will give merchants that rate if their monthly transaction volume is under $20,000 and custom rates apply above that amount.

“We’re delighted to offer businesses another flexible and fast payment option with Tap to Pay on iPhone,” said Chris de Bruin, Westpac’s chief executive of Consumer and Business Banking. “Our business customers can be onboarded and start accepting quick and secure payments on the go within minutes, with only an iPhone and the Westpac EFTPOS Air iOS app — no additional hardware needed. This new capability is particularly beneficial for any business that takes payments on the road or needs its staff to be more mobile on the shop floor. It’s a game changer for tradies, delivery drivers, businesses like hairdressers, mechanics or florists, and many more.”

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