As a picky shopper who appreciates convenience and security, I always look for retailers that accept Apple Pay. It‘s become one of my favorite ways to pay, both in stores and online. But when it comes to speciality retailers like hardware stores, Apple Pay availability can be hit or miss.
Case in point: Ace Hardware. With over 5,000 stores across the United States and 60 countries worldwide, Ace is a go-to destination for home improvement projects and quick fixes. But does Ace Hardware take Apple Pay? The answer is a bit complicated.
In this comprehensive guide, we‘ll dive into the nuances of using Apple Pay at Ace Hardware locations, as well as the broader context around contactless payments in the retail industry. Whether you‘re an Apple Pay enthusiast or just curious about the future of digital wallets, there‘s plenty to unpack. Let‘s get started!
The State of Apple Pay at Ace Hardware
The short answer is that Apple Pay acceptance varies across Ace Hardware stores. Because Ace operates as a retailer-owned cooperative, each store is independently owned and operated. That means it‘s up to individual store owners to decide which payment methods they want to accept.
Some Ace Hardware locations have fully embraced contactless payments and upgraded their point-of-sale (POS) systems with near-field communication (NFC) technology to accept Apple Pay and other digital wallets. However, other Ace stores have been slower to adopt this technology, often due to the costs associated with upgrading payment terminals and training staff.
As a shopper, your best bet is to check with your local Ace Hardware store directly to confirm whether they accept Apple Pay. You can do this by:
- Calling the store and asking about accepted payment methods
- Checking the store‘s listing on Apple Maps for an "Accepts Apple Pay" badge
- Looking for Apple Pay/contactless payment symbols at the register
It‘s worth noting that Ace Hardware‘s official stance is that they are "working on a solution to accept Apple Pay in the future." In a 2019 tweet, the company stated:
We are excited to announce that we are working on a solution to accept Apple Pay, but it is not available at this time. We have no time frame, but please stay tuned here for any future updates.
As of 2024, there haven‘t been any large-scale rollouts of Apple Pay across all Ace Hardware stores. But as consumer demand for contactless payments grows and more retailers get on board, it‘s likely that holdout Ace locations will feel the pressure to adapt.
Apple Pay Adoption Among Retailers
To put things into perspective, it‘s helpful to understand where Apple Pay stands in the broader retail landscape. Since its launch in 2014, Apple Pay has steadily gained traction among both consumers and merchants.
According to a 2022 report from eMarketer, Apple Pay has become the leading digital wallet in the US, boasting over 43.9 million users. That‘s nearly twice the number of its closest competitor, Starbucks. And globally, Apple Pay is now accepted at over 85% of retailers in countries where it‘s available.
Source: eMarketer
Despite this growth, Apple Pay adoption has been slower among smaller retailers compared to large chains. A 2021 survey by Piper Sandler found that only 44% of SMBs in the US accept Apple Pay, compared to 95% of larger businesses. This gap is often attributed to the higher costs and technical requirements associated with upgrading to NFC-enabled payment terminals.
For a retailer like Ace Hardware with a franchise model, rolling out Apple Pay across thousands of independently-owned stores can be a challenge. Each store owner must weigh the benefits of accepting contactless payments against the upfront expenses.
The Financial Realities for Ace Hardware Stores
To understand why some Ace Hardware stores might be hesitant to accept Apple Pay, let‘s take a closer look at the financial considerations at play.
According to a report from FIS Global, the average cost for a small business to upgrade to an NFC-enabled payment terminal is around $500. For stores with multiple checkout lanes or older POS systems, this cost can quickly add up. Store owners must also factor in additional expenses like staff training and ongoing transaction fees.
Interchange fees for contactless payments like Apple Pay can also eat into a store‘s profit margins. When a customer pays with Apple Pay, the merchant is charged a fee by the card-issuing bank and the credit card network. These fees typically range from 1.5% to 3.5% of the total transaction amount.
For small hardware stores already operating on thin margins, these added costs can be a tough pill to swallow. Store owners have to weigh the potential benefits of accepting Apple Pay (e.g. faster checkout times, increased customer satisfaction) against the financial drawbacks.
That said, there‘s a growing body of evidence that shows accepting contactless payments can actually boost sales and customer loyalty. A 2022 study by Visa found that businesses that accept contactless payments see a 20-30% increase in transaction volumes on average. The study also found that 47% of consumers are more likely to shop at stores that offer contactless payments.
As Stephanie Martz, Senior Vice President and General Counsel at the National Retail Federation, explains:
"Contactless payments have become an essential part of the retail experience. Customers now expect to have the option to tap and pay at checkout, and retailers who don‘t offer this technology risk losing sales and customer loyalty. The benefits of accepting digital wallets like Apple Pay often outweigh the costs in the long run."
Tips for Encouraging Apple Pay Adoption
As a savvy shopper, you may be wondering what you can do to encourage your local Ace Hardware store to start accepting Apple Pay. Here are a few tips:
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Voice your demand: Next time you‘re at Ace, let the store manager or staff know that you‘d like to see them accept Apple Pay. The more customers request it, the more likely they are to consider upgrading their payment systems.
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Choose stores that accept Apple Pay: If you have multiple Ace Hardware locations in your area, opt to shop at the ones that already take Apple Pay. Voting with your wallet sends a strong message.
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Spread the word: If you find an Ace store that accepts Apple Pay, let your friends and family know! Post about it on social media or leave a positive review mentioning their contactless payment options.
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Educate staff: Some Ace employees may not be familiar with how Apple Pay works. If you‘re paying with your phone or watch, take a moment to explain the process and benefits. This can help build awareness and acceptance among staff.
Remember, change doesn‘t happen overnight. But by consistently advocating for Apple Pay as a preferred payment method, shoppers can help push more Ace Hardware stores to embrace the contactless future.
How Other Hardware Stores Handle Apple Pay
Ace Hardware isn‘t the only player in the home improvement retail game. Let‘s take a quick look at how some of their top competitors handle Apple Pay:
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The Home Depot: The largest home improvement chain in the US has accepted Apple Pay since 2015. Customers can use it both in-store and on the Home Depot app.
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Lowe‘s: Lowe‘s was another early adopter, rolling out Apple Pay support at all of its US stores in 2016.
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True Value: Like Ace, True Value operates as a retailer cooperative. Apple Pay acceptance varies by location, with some stores offering it and others sticking to traditional payment methods.
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Harbor Freight: As of 2023, Harbor Freight accepts Apple Pay in stores nationwide.
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Menards: Menards does not currently accept Apple Pay in-store or online. They do take Menards Big Cards, credit/debit cards, and PayPal both in-store and on Menards.com.
This mixed bag reflects the broader state of contactless payments in the hardware/home improvement sector. While large national chains like Home Depot and Lowe‘s have been quick to jump on the Apple Pay bandwagon, smaller or regional retailers have been slower to adapt.
But as consumer preferences continue to shift towards contactless, it‘s likely that more holdouts will begin to feel the competitive pressure to accept digital wallets like Apple Pay.
The Environmental Angle
Beyond the convenience and security benefits, there‘s another compelling reason for retailers like Ace Hardware to embrace contactless payments: environmental sustainability.
Consider this: each year, US retailers hand out an estimated 25 billion paper receipts, requiring over 3 million trees and 9 billion gallons of water to produce. That‘s not to mention the energy costs associated with printing and the waste generated when those receipts inevitably end up in the trash.
By contrast, digital payment methods like Apple Pay offer a paperless alternative. When you pay with your iPhone or Apple Watch, your receipt is automatically stored in the Wallet app for easy reference. No trees harmed, no waste produced.
As more consumers prioritize eco-friendly shopping habits, offering digital receipts through contactless payments can be a selling point for sustainability-minded hardware shoppers.
Generational Differences in Apple Pay Usage
Another factor that may impact Apple Pay adoption at Ace Hardware is the store‘s core customer demographic. While Apple Pay usage is growing across all age groups, it‘s particularly popular among younger shoppers.
According to a 2022 survey by Paysafe, 57% of Gen Z consumers and 50% of Millennials prefer using digital wallets like Apple Pay over traditional payment methods. By comparison, only 32% of Gen X and 17% of Baby Boomers said the same.
Source: Paysafe
For a store like Ace Hardware that may cater to an older DIY crowd, this generational divide could be a consideration in the Apple Pay equation. Store owners may feel less urgency to cater to digital natives if their core shoppers are content with tried-and-true payment methods.
However, it‘s worth noting that contactless payment adoption is accelerating across all demographics. The COVID pandemic increased demand for touch-free retail interactions and helped normalize the use of digital wallets. As Jodie Kelley, CEO of the Electronic Transactions Association, explains:
"The pandemic accelerated a shift that was already happening towards contactless payments. Now, customers of all ages are getting more comfortable with the idea of paying with a tap. Retailers who accommodate those evolving preferences will be well-positioned to thrive as the world continues to go more contactless."
The Bottom Line
So where does all this leave us on the question of Apple Pay at Ace Hardware? The current state of affairs might best be summed up as "it‘s complicated."
On one hand, Ace‘s decentralized franchise model and independent store ownership mean that Apple Pay availability is spotty and inconsistent across locations. Shoppers shouldn‘t assume they‘ll be able to pay with a tap at any given Ace store.
But on the other hand, the broader retail landscape is clearly shifting in the direction of contactless payments – and Apple Pay is leading the charge. As consumers increasingly demand the convenience and security of digital wallets, retailers of all sizes will face mounting pressure to get on board or risk losing business.
For Ace Hardware, the key may be finding ways to incentivize and support individual store owners in upgrading their payment technology. Whether through co-op wide initiatives, financial assistance, or educational resources, making the switch to contactless can be more feasible with the right corporate backing.
As an Apple Pay enthusiast myself, my advice to fellow picky shoppers is to keep voicing our preference for contactless payments. The more we vote with our wallets and speak up about the benefits of digital wallets, the faster retailers like Ace will adapt to meet changing consumer expectations.
And in the meantime, don‘t hesitate to call ahead, check store listings, or look for those telltale contactless symbols at the register. With a bit of research and advocacy, we can collectively work towards a more convenient, secure, and eco-friendly payment landscape – one tap at a time.
