Tap to Pay on iPhone: What It Is and How to Set It Up

No. Apple Pay is how your customer pays. Tap to Pay on iPhone is how you get paid. It's an Apple feature that turns your iPhone into a contactless card reader. Apple says you can take contactless payments "right on iPhone and without any extra terminals or hardware."

It doesn't work alone. You need a payment app that supports it, and the latest version of iOS. The app connects to a merchant account and moves the money. Apple isn't your processor.

Want the bigger picture on selling from a phone? See our mobile payments overview.

Apple lists these:

• Contactless debit and credit cards
• Apple Pay on iPhone
• Apple Pay on Apple Watch
• Other phone wallets and smart watches that do contactless payments

A contactless card has the contactless symbol on it. Apple says your payment app may not accept some contactless cards, and limits may apply on how much a sale can be.

What if a card asks for a PIN? Apple says there are built-in options to help people who need help typing a PIN.

Apple keeps a list of providers that support it in the United States. Today the list includes Square, Clover from Fiserv, SwipeSimple, Helcim, PayPal and others.

We set up two apps:

• PayAnywhere. Our PayAnywhere page says Tap to Pay on iPhone needs no reader for contactless cards and phone wallets, including Apple Pay and Google Pay. Chip-insert and swipe sales need the Bluetooth reader.
• SwipeSimple. Apple lists SwipeSimple. Our SwipeSimple page describes the Swift B250 Bluetooth reader for tap, chip and swipe. It doesn't mention Tap to Pay on iPhone, so ask us before you plan around it.

Need a counter or a full register? Our Clover page covers that.

Apple says a merchant needs three steps:

1. Download a supported payment app from the App Store.
2. Accept the terms and conditions on the device.
3. Let the app finish setting up your phone.

After that, Apple says you can take payments right away.

One catch. The app needs a merchant account behind it. We help you pick the app and open the account it runs on. Already take cards and want to compare? Start with our free statement review.

• Chip-insert and swipe cards need a reader, per our PayAnywhere page.
• It only works where Apple offers it. Apple says it isn't available in all markets.
• You need a supported app. Apple's feature alone isn't a payment account.
• Apple says some contactless cards may not be accepted and limits may apply.

It works best when you're on the move and most customers tap. Think of a contractor billing on site, a market stall or a pop-up. It works less well if many customers insert or swipe, or if you need a receipt printer and cash drawer at a fixed counter. For that, look at a full POS system.