How Apple’s iPhone point of sale fits into Adyen’s payments mix | PaymentsSource

An Apple feature that allows iPhones to serve as mobile point of sale terminals is getting an early look from the payment processor Adyen, which views the innovation as an added option to combine shopping and payments as traditional checkout hardware fades.

“Depending on how many use cases you have for your business, this could be a complementary option or a replacement in some circumstances,” said Kamran Zaki, chief operating officer at Adyen. “If you want some associates to be more mobile, you can do that. You can have some at a fixed location and some that don’t have to go back to the counter to perform checkout.”

Adyen recently adopted Apple’s Tap to Pay, which allows businesses to use iPhones for contactless payments. The technology is Apple’s entree into point of sale acceptance, though the feature is not a full-fledged payment processing system. Apple’s Tap to Pay requires a third party app to work, which leaves an opportunity for payment processors to work with Apple while de-emphasizing more traditional point of sale systems.

Adyen recently deployed Apple’s Tap to Pay, enabling iPhones to be used as point of sale terminals.

The Adyen deployment pushes hardware-based point of sale terminals toward obsolescence, said Stephan Schambach, founder and CEO of NewStore, an early partner with Adyen on the Tap to Pay deployment. NewStore sells a cloud-hosted platform for point of sale, order management, inventory and consumer apps, with clients including retailers UNTUCKit, Marine Layer, Burton and Faherty.

“The main impact is the payment is going to be more natural and convenient,” Schambach said, adding that the integration is in pilot testing with two clients in New York ahead of a broader rollout in the next few months. “They can use the same app to check out items or to sell items that aren’t available in the store but are online.”

Adyen is hoping to expand its ability to offer omnichannel payments and shopping. The processor’s customer base is mostly enterprise or mid-market businesses — which is a different market than Square and PayPal’s core merchants, generally sole proprietors like plumbers, dog walkers or single-location merchants. “It’s an incremental technology…