Tap to Phone Technology Enhances Payment Acceptance – NEW

Customer using phone for payment at cafe restaurant, cashless QR code technology and money transfer concept

Tap to Phone Technology Enhances Payment Acceptance

By adopting cutting-edge technologies, businesses can deliver more convenient checkout experiences than ever before. Notably, one of the latest advances in the fintech space is Tap to Phone. This payment method allows merchants to accept card or digital wallet payments with a smartphone or mobile device — no external hardware required.

The implementation of Tap to Phone not only makes payment processing easier and faster — it also helps retain and attract customers. A study by Wunderman Thompson found that since the pandemic, 80% of consumers reported that their shopping habits have changed. Another study found that for 57% of consumers, the availability of digital payment options would determine where they decide to give their business.

In the next few years, Tap to Phone is poised to revolutionize how merchants conduct business.

What is Tap to Phone Technology?

Tap to Phone allows a merchant’s smartphone or mobile device to accept card payments without needing external hardware. Essentially, the phone becomes its own point-of-sale (POS) device. Similar to how customers can use their mobile wallets or NFC chip cards by tapping their phone or card against a terminal, they can now tap their card over the merchant’s mobile device. Eliminating the need for a terminal reduces upfront hardware costs, prevents lost sales, and improves cash flow — saving sellers time and money. Some key benefits include the following:

  • Elimination of External Hardware — Frustrated with the bulky payment terminals of years past? Today, businesses are performing more and more tasks with mobile devices. Thanks to new regulations for PIN entry on touchscreens, merchants can now accept payments on their smart devices. Tap to Phone clears up desk space and ensures hassle-free integration!
  • No-Stress Setup — Since physical POS terminals are unnecessary, Tap to Phone setup is simple: Sellers simply download an application supported by their payments provider and follow the onscreen instructions. Once installed, they can immediately start processing transactions.
  • Low to No Startup Costs — This payment method eliminates the time and money spent on terminal installation. It also allows merchants to provide faster in-store checkouts and curbside pickups.
  • Instant Payment Processing — Partnering with a payment processing company can allow merchants to process card payments quickly, conveniently, and securely. According to a recent survey, only 16% of consumers always carry cash, and the vast majority report a credit or debit card or a digital wallet as their preferred form of payment. As fewer consumers carry cash, merchants should offer card and mobile wallet acceptance. Tap to Phone is the next step in our global transition to a digitized payments landscape.

How Tap to Phone Technology Works

With Tap to Phone, Android and iOS smartphones and tablets are transformed into software-based POS (softPOS) terminals. Merchants can accept contactless payments anytime, anywhere. To access this capability, merchants simply download an app, which their acquirer supports, and then select their participating bank within the app. 

Once setup is complete, they’re ready to start accepting transactions. The customer taps or holds their card, smartwatch, or smartphone over the merchant’s phone, and their payment is processed. Consumer information is protected with unique security codes for each transaction. These codes cannot be reused and securely conceal the customers’ information, protecting every transaction from fraud.

Reasons to Use Tap to Phone

Because of its easy implementation and affordability, small businesses, retailers, and merchants in various industries can benefit from Tap to Phone technology. It can be used in the following applications:

  • Traveling Sales: Employees on the road need fast, convenient, and safe ways to make transactions after their sales pitches. With Tap to Phone, they can land their sales on the spot without the hassle of payment accessories.
  • Line Busting: No one enjoys standing in a long line. If customers frequently have to stand in a retail store’s lines, they’ll begin to view that store negatively. They could express dissatisfaction to others, and the retailer’s sales could be significantly affected. Tap to Phone could be the digital solution that still gets customers in the stores while providing them the ease and security of mobile payments. This new technology allows employees to check out customers anywhere in the store.
  • Pay at Table: Restaurants can streamline the payment process by equipping servers with phones or tablets that accept Tap to Phone. This enables them to increase table turnover rate and ensure a seamless dining experience for customers.
  • Delivery Services: Consumers don’t need to have cash on hand to pay for delivery or tipping. If the employee has a smartphone, they can accept contactless payment from the customer with a simple tap.
  • Pop-ups: Online direct-to-consumer (DTC) brands can benefit from Tap to Phone tech when they launch pop-ups or small stores. Eliminating the need for hardware or payment accessories saves space and streamlines logistics.
  • Food Trucks: By accepting Tap to Phone, food trucks can minimize the amount of cash they need to have on hand.