What is Tap to Phone?
Through this feature, a merchant can turn to their smartphones to accept payments after they download the necessary app. Available in numerous countries from around the world, Visa’s Tap to Phone enables merchants to accept payments through Android devices in a contactless fashion. Consumers benefit from a safe payment experience, with limited physical contact and a faster checkout process with just a tap of a contactless card, phone, or other NFC-enabled device (more about NFC technology here).
According to Paysafe, 61% of consumers choose to shop where they can pay contactless. That comes as no surprise, considering that in 2020 there were over 2 billion NFC-enabled smartphones in use globally. That means that over 20% of the world’s population can pay contactless, according to NFC Forum. Last but not least, 58% of sellers accepted that contactless and card payments are what their consumers prefer, according to TTP Concept Research, cited by Visa.
Benefits and use cases
Besides the convenience of turning their own smart device into a contactless POS terminal to accept contactless payments, merchants can increase their customer base by reducing the use of cash and accepting payments from consumers that are reluctant to carrying cash.
Considering that good customer experience is a big incentive to a running business, offering contactless payments to consumers means a faster payment process, enabling more customers to make payments in less time. According to PYMNTS, almost half of consumers prefer to digital payments because it means they avoid standing in long lines. Also, Tap to Phone allows traveling merchants to accept payments on the go, without carrying payment accessories.
Through Tap to Phone, Visa enables any merchant, regardless of their size, to improve their business by incorporating digital payments into their offering, increasing customer demand, and improving consumer experience.
Paymob enters the scene
In August 2021, Tap to Phone payment provider Paymob partnered with fintech app ZmBIZI in the US which means that Visa’s technology will be available through Paymob’s SoftPOS integrated on ZmBIZI’s smartphones.
In this scenario, Paymob acts as the payment rail that enables ZmBIZI’s app to accept contactless payments. Thus, any merchant with a ZmBIZI smartphone now has a direct card terminal, without needing extra hardware. After the US launch, Paymob aims to expand its payment solution to UK and Europe.
Who stand to benefit?
As mentioned before, the Tap to Phone technology addresses businesses of all sizes. If we take Paymob as an example, its SoftPOS solution is targeted towards retailers, gig economy workers, the hospitality and transportation sectors, including food delivery workers. Also, the banking industry can white label the SoftPOS feature for their business customers.
The bottom line
Tap to Phone is a flexible payment solution who helps micro-, small- and medium-sized businesses to simplify their checkout flow while improving in-person payment processes for their customers.