How to Choose Apple Pay payment processing company and Its Benefits for Preventing Cart Abandonment and Improving CVR

For businesses operating through e-commerce sites or mobile apps, "cart abandonment," where end users leave without completing the purchase while adding products to their cart, is the most serious issue of lost sales opportunities.
There are various causes of cart abandonment, but in today's world, where access via smartphones is mainstream, the biggest barrier is "payment data input." On a small screen, taking out a credit card and accurately entering a 16-digit number, expiration date, and Security Code creates significant friction for end users. If you're on the move or out and about, it's even more common for people to postpone buying and then forget about it.

One powerful solution that helps relieve stress during this payment and improves conversion rates (CVR) is "Apple Pay."
In particular, in the Japanese market, the iPhone (iOS device) holds an overwhelming market share. Introducing Apple Pay as your payment method means offering the majority of smartphone users in Japan the "easiest and safest way to payment." This article thoroughly explains the benefits of introducing Apple Pay into online business from the perspective of payment experts, as well as the importance of implementing it through a "payment processing company Company (PSP)" that can significantly reduce development and operational costs.

Three powerful benefits brought by Apple Pay

Introducing Apple Pay brings business impact to businesses that goes beyond simply "having one more payment method choice." We will explain in detail what specific changes can be expected from three perspectives.

1. Overwhelming payment speed for improved CVR

The greatest appeal of Apple Pay lies in its seamless payment experience. End users can register their credit or debit card information on Apple devices such as iPhones, Macs, or iPads in advance, and when payment on e-commerce sites, they can complete payment in seconds simply by entering Face ID, Touch ID, or passcodes.
Even new end users can skip the hassle of member registration and form filling on the e-commerce site, so they don't miss out on impulsive purchases. By lowering the barrier at the initial purchase to the extreme, you can increase the efficiency of acquiring new customers and ultimately improve the ROI (Return on Investment) of your ad investment.

2. Robust security to prevent information leaks (tokenization technology)

In online payment, the risks businesses should be most concerned about are "credit card information leaks" and "fraud." Apple Pay is fundamentally designed with extremely advanced security mechanisms.
When end users perform payment, their actual credit card numbers are not shared or stored on the provider's servers or Apple's servers. Instead, each device is assigned a unique "device account number" and stored encrypted in a secure area (secure element).
payment processing is carried out using this tokenized number along with a dynamic Security Code generated for each transaction. This allows businesses to completely avoid the risk of retaining credit card information (de-retaining) their credit card information and safely complete payment. Furthermore, payment execution always requires strong biometric authentication (Face ID/Touch ID), which greatly reduces the risks of third-party impersonation and chargeback (cancellation of sales).

3. High affinity with subscription (recurring payment) businesses

In recent years, subscription-based business models such as SaaS, subscription shopping, and monthly digital content distribution have been rapidly growing. Apple Pay supports not only one-off payment but also ongoing payment.
If authentication and token acquisition are securely completed through Apple Pay at the initial payment, subsequent payment can automatically process billing without the end user having to authenticate each time (※ When using the corresponding payment processing company company's system). This strengthens the foundation of stock revenue without compromising user convenience.

The high wall standing in the way of Apple Pay's "in-house development"

Apple Pay is so attractive, but when it comes to directly implementing (in-house) for their own e-commerce sites or apps, many businesses face hurdles in system development and operation.

When directly implementing Apple Pay, you need to design and build a system from scratch that complies with Apple's strict guidelines. Specifically, this requires implementing encryption protocols to securely communicate with Apple's servers, strictly managing certificates (merchant IDs), and developing front-end UI/UX tailored to both Web (Safari) and native app (iOS) environments.
Furthermore, Apple Pay is merely a mechanism to securely transfer end users' payment data. To actually collect payments, businesses must establish a separate system that directly connects with each credit card company (acquirator) and merchant contract, decrypts encrypted transaction data, and processes sales. For the development and accounting departments of typical business companies, this imposes enormous initial investments and endless maintenance costs, presenting a high hurdle.

payment processing company Benefits of Using the Company's (PSP) 'Comprehensive payment Service'

The best solution to overcome the difficulties of in-house development and implement Apple Pay quickly and securely is to use the "Comprehensive payment Service" provided by payment processing company companies (PSPs). By incorporating PSP, businesses can enjoy the following significant benefits.

Significant reduction in development costs and speedy implementation

payment processing company Companies (PSPs) provide APIs and system integration interfaces that meet Apple Pay's system requirements and advanced security standards in advance. Businesses only need to connect their own systems according to the specifications prepared by the PSP, eliminating the need to develop encryption processes from scratch and dramatically reducing development manpower and costs. This enables rapid market entry without missing out on business opportunities.

"Centralized Management" and "Bulk contract" for Various payment method

End user needs are diversifying, and the sales maximization strategy is to comprehensively offer multiple payment method such as Apple Pay, regular Credit card payment, CVS Payment, buy now pay later payment (BNPL), and other ID payment.
By using comprehensive payment services, you can complete the contract procedures and system connections of these multiple payment method all within a single point of contact through the payment processing company company. There is no need for complicated screenings or contract negotiations for individual payment agencies.

Streamlining accounting operations: "Unifying the Payment Cycle and Sales Management"

payment method The format of sales data and payment cycles are inconsistent, placing a significant burden on accounting staff in the process of closing and cash flow management.
payment processing company By using the company's comprehensive payment service, both sales via Apple Pay and regular Credit card payment sales can all be centrally viewed and processed through a unified management dashboard. Since the deposit cycle is also unified on the PSP side, accounting operations are greatly streamlined, allowing resources to focus on core business operations.

Don't fail! How to choose a payment processing company company that supports Apple Pay

There are several payment processing company companies claiming to support Apple Pay, but to choose the best partner to support your business growth, be sure to check the following points.

• System stability and processing capacity (transaction Actual): Does it have robust server infrastructure that prevents payment processing delays or downtime even during sudden traffic spikes, such as during e-commerce sales or media exposure?
• recurring payment Support for Subscriptions: Does it support not only the payment each time but also regular automatic debits using Apple Pay?
• Ability to propose multi-layered security measures: In addition to Apple Pay's security, can you offer comprehensive security solutions such as EMV 3-D Secure (identity authentication service) and proprietary fraud detection systems?
• Implementation support and response capabilities during failures: From defining system requirements to post-implementation operational support, and is there a rapid escalation system in place in case of any trouble?

Summary: Creating the Best payment Experience with Apple Pay and Comprehensive payment Services

In Japan's e-commerce and digital content markets, the introduction of "Apple Pay," which offers the ultimate smooth payment experience for iPhone users, is no longer a "convenient feature" but has shifted from being an "essential strategy to maximize sales and maintain a competitive edge."

To enjoy the benefits of preventing cart abandonment and reliably converting new customers without exhausting your own development and accounting resources, leveraging the comprehensive payment services of a trusted payment processing company company (PSP) is an absolute prerequisite for success.

With your business model and future expansion in mind, build a scalable and stable infrastructure of payments to create a business environment that continues to be chosen by end users.

For detailed explanations of how Apple Pay payment processing company works, the benefits of implementing it on PG Multi-Payment Service, and detailed specifications, please refer to the service page below. Please also check the details.