Apple Pay is one of the most familiar ways to pay in Europe, both in shops and online. For merchants it is easy to misunderstand, though. Apple Pay is not a separate payment network like iDEAL or Swish. It is a wallet that sits on top of the customer’s existing cards, so the payment still runs on Visa, Mastercard or another card scheme.
This guide explains how Apple Pay works for merchants, why it can improve mobile checkout, how fees, chargebacks and authentication work, what is changing in Europe, and how to add it.
Key takeaways
- Apple Pay is a digital wallet. Customers add their bank cards to it, and payments are processed as card payments under card scheme rules.
- Instead of the real card number, Apple Pay uses a device-specific token, so the card number is never shared with the merchant.
- Customers confirm with Face ID, Touch ID or their passcode, which usually satisfies strong customer authentication in the EEA and UK.
- Chargebacks, refunds and fees follow the card rules, through your normal acquirer or payment provider.
- In the EEA, Apple committed in 2024 to open iPhone contactless technology to other wallets, so the wallet landscape will become more varied.
Is Apple Pay a local payment method?
Not in the usual sense. Local payment methods such as iDEAL, Swish or Wero move money directly from the customer’s bank account. Apple Pay doesn’t: it stores the customer’s debit and credit cards and passes a card payment to the merchant.
That distinction matters because it decides the rules that apply. An Apple Pay payment has the same card scheme fees, the same dispute rights and the same settlement as any other card payment through your acquirer. What changes is the checkout experience and the security around the card details. Our guide to local payment methods in Europe explains how wallets fit alongside bank-based methods.
How Apple Pay works
- The customer adds a card to Apple Wallet. The card issuer approves it and a token is created for that device.
- At checkout, the customer chooses Apple Pay on your website, in your app or at a contactless terminal.
- They confirm with Face ID, Touch ID or their device passcode.
- The token and a one-time security code are sent through your payment provider to the card network, which maps the token back to the real card for the issuer.
- The issuer approves or declines, and the payment settles like any card payment.
Why tokenisation matters
With Apple Pay, the merchant never receives the customer’s real card number. Each device gets its own token, and each payment carries a one-time code. If a merchant’s systems were ever compromised, the tokens would be of little use to criminals. Read more about how tokenisation works.
Benefits for merchants
- Faster mobile checkout. Customers don’t type card numbers or addresses, which removes much of the friction on small screens.
- Built-in authentication. Biometric or passcode confirmation on the device usually counts as strong customer authentication, so fewer customers hit a separate 3D Secure challenge.
- Less exposure of card data. Tokens replace real card numbers, which lowers the risk if your systems are breached.
- Trust. Many customers recognise and prefer the Apple Pay button.
Apple Pay does not guarantee approval. The issuer still decides, and normal fraud screening still matters.
Fees, chargebacks and refunds
Fees
Merchants usually pay their normal card processing fees for Apple Pay payments, through their acquirer or payment provider. Check with your provider whether any extra fee applies to wallet payments in your contract.
Chargebacks
Because Apple Pay payments are card payments, customers can raise disputes through their card issuer under the usual card scheme rules. Our guide to chargebacks explains the process and reason codes.
Refunds
Refunds go back to the card used through Apple Pay, processed like any card refund.
Apple Pay for subscriptions
Apple Pay can be used to set up recurring payments. The first payment is authenticated on the customer’s device, and later payments are processed as merchant-initiated transactions using the stored token. If you run a subscription business, ask your payment provider how it handles Apple Pay tokens for renewals, and keep your billing descriptor and renewal reminders clear. Our guide to recurring billing has more on this.
What is changing in Europe
On 11 July 2024, the European Commission accepted commitments from Apple to give third-party developers access to the iPhone’s contactless (NFC) technology in the European Economic Area, without having to use Apple Pay or Apple Wallet. In practice, that lets banks and other providers offer their own tap-to-pay wallets on iPhones in the EEA.
For merchants, the main effect is more choice for customers in physical stores. Online, Apple Pay remains a separate button at checkout, and it sits alongside cards and the local methods of each market.
Apple Pay and high-risk merchants
Apple Pay is provided through your payment provider, not directly by Apple, so whether you can offer it depends on your provider and acquirer. Apple also has its own rules on which goods and services can use Apple Pay, and some categories are restricted. If you run an adult, gambling or other high-risk business, ask your provider whether Apple Pay is available for your business type before you plan around it.
How to add Apple Pay
- Check that your payment provider supports Apple Pay for your business type and markets.
- Enable Apple Pay in your provider’s dashboard or integration.
- For Apple Pay on the web, register and verify your domain as your provider instructs.
- Add the Apple Pay button to your checkout, following Apple’s design guidelines.
- Test on iPhone, iPad and Mac, including refunds and, if relevant, recurring payments.
Frequently asked questions
Is Apple Pay a card payment?
Yes. Apple Pay is a wallet that stores the customer’s bank cards. Payments are processed as card payments on Visa, Mastercard or another card network, under the usual card scheme rules.
Do merchants pay extra to accept Apple Pay?
Usually merchants pay their normal card processing fees for Apple Pay payments. Check your contract with your payment provider for any wallet-specific fees.
Can customers file chargebacks on Apple Pay payments?
Yes. Because Apple Pay payments are card payments, customers can dispute them through their card issuer under card scheme rules, just like other card payments.
Is Apple Pay secure?
Yes. Apple Pay uses a device-specific token instead of the real card number, a one-time security code for each payment, and biometric or passcode confirmation on the device.
Does Apple Pay count as strong customer authentication?
In most cases, yes. Confirming a payment with Face ID, Touch ID or the device passcode usually meets strong customer authentication requirements in the EEA and UK, so a separate 3D Secure challenge is often not needed.
Can I use Apple Pay for subscriptions?
Yes. The first payment is authenticated on the device, and later payments can be charged as merchant-initiated transactions using the stored token. Ask your payment provider how it supports this.
What changed for Apple Pay in the EU?
In July 2024, the European Commission accepted Apple’s commitments to let other providers use the iPhone’s contactless technology in the EEA, so customers can use other tap-to-pay wallets on iPhones as well as Apple Pay.
Next step
Apple Pay works best as part of a checkout that also covers cards and the local methods of your main markets. Fasto works with adult, subscription, nutraceutical, gaming, dating and hospitality merchants. Approval typically takes two to three weeks.
Get a free quote and tell us which markets you sell to.
