Venmo and PayPal now offer 'Tap to Pay' on iPhone for businesses
Every day more people are ditching their physical wallets for digital ones, with a recent study showing that as many as 79% of Gen Zers use digital wallets. Joining the trend, PayPal finally launched a way for businesses using Venmo or Zettle to accept iPhone contactless payments.
Also: 5 reasons why I switched to a digital wallet, and you should too
On Thursday, PayPal announced that all Venmo business profile and PayPal Zettle users can now accept contactless cards, Apple Pay, and digital payments on their iPhones without additional hardware or subscription costs.
All businesses need to do is download the free Venmo or PayPal Zettle app on their iPhone XS or later to start charging customers using Tap to Pay on iPhone. PayPal has offered Tap to Pay on Android via Venmo and Zettle since June of last year, available on phones running Android 7.38 and up.
With the feature, merchants will also have the option to add taxes, accept tips, issue refunds and receipts, and more using Tap to Pay. All the funds from the sale will go directly to the business's PayPal Zettle or Venmo account.
PayPal noted that this feature will help small businesses increase sales by capitalizing on the fact that more people are using digital wallets.
"As consumers increasingly turn to non-cash options to pay, small businesses are looking for affordable and flexible ways to offer their customers more payment choices without being tied down to a fixed location," said Nitin Prabhu, VP of small business & financial services at PayPal.
Also: Google Files adds a scanner - here's how to digitize your documents
There is a fee for using the service According to the Venmo Tap to Pay FAQ, Venmo charges business profile owners a fee of 2.29% plus $0.09 for each payment accepted with Tap to Pay.
As a customer, you don't need a Zettle or Venmo account to use the feature. All you have to do is tap your digital wallet on the merchant's smartphone to complete the transaction in the same way you would with any other payment terminal.