Customers can use their iPhones at checkout terminals, Google Pay on ecommerce websites, or contactless cards against a merchant’s phone. Each of these options will appear similar to the customer, but they will use different devices for both customers and merchants.
Apple Pay for merchants can mean accepting Apple Pay through a contactless terminal, using Apple Pay on an ecommerce website, or even using the iPhone as the merchant’s device to accept the payment. Each of these options can help merchants understand the best way to set up their store and merchant account for mobile wallet payments.
What’s the Difference Between Mobile Wallets, Contactless Payments, and Tap to Pay?
A mobile wallet, such as Apple Pay or Google Pay, stores the customer’s payment credentials on their mobile device.
Contactless payments use near-field communication to allow the customer to tap their mobile wallet, wearable device or contactless card on the merchant’s payment terminal.
Tap to Pay, also known as Tap to Phone or SoftPOS, allows the merchant to tap into the customer’s mobile device. Payments are processed through the customer’s mobile application instead of using a payment terminal.
| Payment Term | Customer Uses | Merchant Needs | Common Use |
|---|---|---|---|
| Apple Pay | Compatible Apple device with an eligible card | Contactless terminal or supported online integration | In-store, app and web payments |
| Google Pay | Supported Google Wallet credential | Contactless terminal or Google Pay API integration | In-store, app and web payments |
| Contactless card | Tap-enabled physical card | NFC-enabled terminal or Tap to Pay device | In-person payments |
| Tap to Pay on iPhone | Card, phone or wearable | Compatible iPhone and supported merchant app | Mobile and in-person acceptance |
| Tap to Pay on Android | Card, phone or wearable | Compatible NFC Android device and supported app | Mobile and in-person acceptance |
Tap to Pay is not another mobile wallet for customers. Apple Pay states that the new Tap to Pay on iPhone can accept physical contactless cards, Apple Pay, and other digital wallets that work with Android devices.
Apple Pay vs. Google Pay vs. Tap to Pay for Merchants
Apple Pay
To accept Apple Pay in a physical location, the merchant must use a contactless terminal that is correctly configured to receive Apple Pay. For apps and websites, the merchant must integrate Apple Pay into their platform.
Apple Pay also allows merchants to use merchant tokens to complete automatic or recurring payments. These tokens will work across the customer’s Apple devices and will notify the merchant of any changes to the merchant account credentials.
Google Pay
Google Pay can be used in a physical store without the merchant having to implement a Google Pay integration into their physical store terminal. For apps and websites, the Google Pay API will return a token that will be used to submit the customer’s payment to the merchant through their chosen payment gateway.
Google expanded merchant-initiated transaction support in 2026 for recurring sales, deferred payments and automatic reloads. Merchants must use a payment gateway and processor that supports the returned credential and transaction processing workflow.
Tap to Pay
Tap to Pay enables merchants to use their compatible phone to receive and process payments from customers who use contactless devices. Apple created the framework for iOS devices that enable this function, and merchants’ payment providers created the applications that process those payments for them.
While there is no Google Tap to Pay application for merchants, multiple mobile payment providers, including Stripe and Square, have created their own Tap to Pay applications for both iOS and Android devices.
Visa recently reported that the number of individuals using the Tap to Phone functionality has increased 200% worldwide during the year 2025. Furthermore, 30% of all individuals who use the Tap to Phone technology are new small businesses that are utilizing the technology to manage their sales, as opposed to merchants that purchase contactless devices for each sales employee.
How to Accept Mobile Wallet Payments as a Merchant
For in-person sales, merchants need a contactless countertop terminal, contactless handheld reader, iPhone or Android mobile device with contactless capability, and POS software connected to their merchant account.
For ecommerce and in-app purchases, a merchant must use a mobile payment gateway and processor that integrates with mobile wallets such as Apple Pay and Google Pay. Apple Pay requires merchant accounts to be configured through either Apple or an enabled platform. Google Pay requires producers to have access to the platform and a connection with a participating payment processor or gateway.
Payment Nerds offers merchants of all types contactless terminals, handheld devices, and Tap to Pay options for compatible iPhones and Android devices. The appropriate setup for each type of merchant depends on factors like merchant account approval, POS software compatibility, sales volume and industry.
Merchants should test out the system for more than one successful mobile wallet sale. Other functions to test include:
- refunds and voids
- employee permissions
- receipts
- tips
- inventory updates
- deposit reporting
- wallet identification
- accounting
- device replacement
- recurring and stored payment transactions
Businesses in high-risk categories should ensure that mobile wallet and contactless payment functionality is included in their approved merchant account. Adding mobile wallet functionality to a merchant account does not exempt a company from industry-specific limits and requirements.
Mobile Wallet Payment Costs, Security, and High-Risk Considerations
Apple Pay and Google Pay are offered through the merchant’s existing payment processor. The processing company will determine the transaction cost and the terms of the merchant’s account.
Most companies that offer Tap to Pay will use the same pricing as their traditional credit cards. For instance, Square offers a Tap to Pay rate of 2.6% plus 15 cents for both iPhones and Android devices for their free plan. Other companies might use interchange-plus or custom rates for high-risk merchants.
When choosing a processor, compare the following:
- Transaction pricing
- Monthly POS fees
- POS and gateway fees
- Card networks
- Devices
- Data plans
- Chargeback fees
- Funding speed
- Alternatives to POS hardware
- Staff management features
- Account limits
Mobile Wallet Security
Apple Pay and Google Pay do not normally send the merchant a reusable copy of the customer’s complete card number. Instead, the encrypted or tokenized credentials are processed by the merchant or the company that operates the payment system.
EMV tokens can be restricted to a specific merchant, device or scenario for the purchase. This limits the usefulness of the payment token should it be compromised.
EMV tokenization does not prevent payment disputes. If a customer disputes a purchase, cancels a subscription or finds that merchandise did not arrive as ordered, the merchant may be affected. In such instances, merchants must have fraud prevention software and processes in place to manage these situations.
Tap to Pay Security
The PCI Mobile Payments on COTS (MPoC) standard establishes security requirements for merchants that accept payments using commercial phones and tablets and that utilize contactless payments or other forms of consumer verification within their mobile payment solutions.
Merchants should use the provider’s approved application rather than treating any NFC-enabled phone as a payment terminal. Internal controls should also address:
- operating-system updates
- screen locks and biometrics
- multifactor authentication
- employee-specific accounts
- refund permissions
- lost or stolen devices
- unapproved applications
- device inventory
- remote account removal
A validated Tap to Pay solution can reduce dedicated hardware needs, but the merchant remains responsible for staff access, account security and appropriate PCI DSS practices.
How to Set Up Contactless Payments for Your Business
Start with how the merchant does sales – don’t enable every payment function at once.
- Confirm merchant-account eligibility
- Identify in-store, mobile and online payment needs
- Verify that the payment processor supports Apple Pay and Google Pay
- Choose contactless terminals or Tap to Pay devices
- Ensure that the devices have the appropriate operating-system compatibility
- Configure roles and limits for store employees who will manage payments
- Test the terminal with various cards, Apple Pay and Google Pay
- Ensure that receipt printing and reporting functions are working properly
- Train staff on where customers should tap their devices to pay
- Establish procedures for dealing with lost devices or removing employees’ access to the system
- Monitor the performance of the contactless payment system
- Review the system’s performance before rolling it out to additional locations
While many smartphones have NFC functionality, this does not necessarily mean that the phone’s operating system will support contactless payments. Support from the contactless payment technology provider may be limited to certain device models, operating systems, countries and card networks.
It’s also important for merchants to have a backup means of accepting payments. Should a contactless device fail or a customer not have access to a contactless payment method, an alternative reader or payment link can be used.
Mobile Wallet and Tap to Pay FAQs
Q: What is Apple Pay for merchants?
A: Apple Pay for merchants refers to the technology that allows merchants to accept Apple Pay through contactless terminals, apps, or online checkout. A merchant will need to have a compatible processor, gateway, or ecommerce platform.
Q: What are mobile wallet payments?
A: Mobile wallet payments use the credentials from a digital wallet like Apple Pay or Google Pay to authorize purchases in person with contactless technology or online integrations.
Q: Does a merchant need special equipment for Apple Pay?
A: In-store merchants may need special equipment like contactless or Tap to Pay technology. Online merchants will need an Apple Pay checkout integration to accept these mobile wallet payments.
Q: Is Tap to Pay the same as Apple Pay?
A: No. Apple Pay is a customer payment wallet. Tap to Pay on iPhone turns the merchant’s iPhone into an acceptance device for Apple Pay, other wallets and contactless cards.
Q: Can an iPhone accept Google Pay?
A: Tap to Pay on iPhone can accept contactless wallets presented from Android devices. The merchant’s payment provider will determine which networks and payment types can be accepted.
Q: Does Google Pay require a special terminal?
A: Google Pay works at any terminal that accepts contactless cards. Online payments require integration between the merchant’s website and Google Pay API and Google Pay gateway.
Q: Are mobile wallet transactions more expensive?
A: The cost of accepting wallet payments depends on the merchant’s processing provider and account. In-person payments using wallets will use contactless card-present pricing structures set by the merchant’s provider. Online transactions will use ecommerce pricing.
Q: Can high-risk merchants accept Apple Pay and Google Pay?
A: Wallets like Apple Pay and Google Pay will work for merchants who have an acquiring bank and processor that supports these wallets. Wallet payments do not change the merchant’s risk classification.
Q: Is Tap to Pay secure for employees’ personal phones?
A: The solution is secure on employees’ personal phones. However, the business would need to put policies in place to manage the devices and the employees’ access to them. Personal devices may not offer the same level of control and oversight as a company-owned device.
Add Mobile Wallet and Tap to Pay Options to Your Checkout
Apple Pay and Google Pay offer customers faster ways to present their payment credentials at stores and online. Tap to Pay allows merchants to accept those same payment credentials without purchasing a reader for each sales device.
Depending on the type of merchant account and devices already in use, merchants can determine the best way to add Tap to Pay technology to their operations. Determining compatibility and testing the technology before rolling it out to all sales devices can ensure the new payment technology runs smoothly for the merchant and the customers it serves.
Sources
- Apple Developer. “Implementing Apple Pay.” Accessed August 2026.
- Apple Developer. “Apple Pay Merchant Tokens.” Accessed August 2026.
- Google for Developers. “Google Pay API Overview.” Accessed August 2026.
- Google for Developers. “Google Pay Merchant-Initiated Transactions.” Accessed August 2026.
- Visa. “When Simplicity Becomes a Competitive Advantage for SMBs.” Accessed August 2026.
- EMVCo. “EMV Payment Tokenisation.” Accessed August 2026.
- PCI Security Standards Council. “Mobile Payments on COTS.” Accessed August 2026.
