Walmart will finally accept Apple Pay and Google Pay. Here's what's changing

Walmart has now embraced Apple Pay and Google Pay, bringing tap-to-pay technology to its checkout counters. Until now, this major retailer relied on its own Walmart Pay system, but it is finally joining the majority of US retailers that have adopted tap-to-pay methods. This change comes after about 85% of retailers in the US have started accepting tap-to-pay, mainly due to its convenience and enhanced security.

Tap-to-pay systems, like Apple Pay and Google Pay, allow customers to make payments by simply tapping their phone on the point-of-sale (POS) terminal. They not only save time by eliminating the need to fumble with credit cards or cash, but they also provide better security by encrypting payment information and converting it into a one-time-use token. Even if a data breach occurs, only the token is compromised, and not the actual credit card details.

Despite the rise of tap-to-pay, Walmart Pay still exists, primarily to avoid paying processing fees to Apple Pay and Google Pay. By using its own payment system, Walmart can save on fees while still benefiting from the data collected through its transactions. However, Walmart has not abandoned Walmart Pay entirely, as tap-to-pay is described as an "addition to payment options already offered like cash, credit card, or Walmart Pay."

For customers who use Walmart Pay, this change likely means even more convenience, as Walmart Pay will continue to offer features such as electronic receipts, loyalty rewards, and potential discounts at gas stations. Although Walmart Pay may gradually become less popular, the retailer is unlikely to eliminate it entirely, as it holds valuable customer data that could be used for targeted marketing and loyalty programs.