Visa has launched its Tap to Phone technology in more than 15 markets, with the US to follow in 2021. The technology enables Android handsets to be used for accepting contactless payments on any NFC-enabled Android device with no need for additional hardware.
After piloting Visa Tap to Phone over the past year, Visa today announced product availability in more than 15 markets with plans to expand to the United States and accelerate global product growth in the rest of the world via more than 35 new partners, including Visa Ready for Tap to Phone partners.
Tap to Phone transforms current generation Android smartphones or tablets into contactless, or tap to pay, software-based point of sale (softPOS) terminals without additional hardware.
As part of Visa’s commitment to digitally-enable 50 million small and micro businesses, this cost-effective tool helps businesses quickly access the digital economy, prevent lost sales and improve cash flow by accepting contactless payments anywhere, anytime. Already, the number of sellers using Tap to Phone has grown by 200% over the past year and is now live in numerous countries across Europe, Middle East, Africa, Asia Pacific and Latin America.
Recent launches for Tap to Phone include Belarus, Malaysia, Peru, Russia and South Africa, with upcoming launches planned in Brazil, Italy, United Arab Emirates, United Kingdom and more.
Opportunity for Tap to Phone by the numbers:
Two billion Android devices globally could transform to payment acceptance machines1.
Tap to Phone holds particular promise for the 180 million micro and small merchants (MSM) around the world, where fewer than 10% of MSMs in many emerging markets currently accept digital payments2.
In a survey conducted by Visa3, 63% of MSMs said they would likely implement Tap to Phone in their own businesses and more than 50% of consumers said they would likely use Tap to Phone if offered to them.
“It was just five years ago when Visa set out to enable virtually any IoT or mobile device to make payments and now today, we are enabling many of those same devices to accept payments in a very simple way with Visa Tap to Phone,” said Mary Kay Bowman, global head of buyer and seller solutions, Visa. “With billions of phones around the world at the ready, the opportunity that comes with lighting them up as payment acceptance devices is enormous. Visa Tap to Phone could be one of the most profound ways to reinvent the physical shopping experience.”
Tapping to pay, or contactless payments, is growing rapidly in the COVID-19 era. Visa has seen tap to pay payments grow by 40% year-over-year4. In a recent Visa survey, nearly half of consumers (48%) said they would not shop at a store that offers only payment methods requiring contact with a cashier or shared machine like a card reader5, making it critical for businesses to expand their acceptance methods beyond cash.
Reinventing In-store Shopping, No Longer Constrained to the POS
According to Visa data6, casual dining, travel resources and grocery are currently the most typical category of use for softPOS solutions. However, Tap to Phone can elevate consumer experiences in additional ways including:
Line busting: With six-foot social distancing mandates in effect, lines can become overwhelming. Tap to Phone helps employees to checkout customers quickly, anywhere around the store.
Transit: In Japan and Belarus, Visa was first to show how Tap to Phone can help eliminate the need for standalone ticket machines and additional validation hardware for conductors.
Nomadic and service-based businesses: Make a sale from anywhere and get paid on the spot without having a hardline POS or adding payment accessories.
Pay on delivery: Tap to Phone decreases friction when consumers pay for delivery, eliminating the need for cash and limiting touch during the transaction.
“We always look for ways to improve our customer experience, from personalized service to ease of payment. That’s where Tap to Phone comes in. Customers are always curious and impressed when we process their payment using nothing but our mobile phone. Not only has Tap to Phone been helpful for our in-store sales, but we also use it for our contactless product deliveries, helping customers stay at home and pay with their cards, which makes them gain confidence in our brand,” said Karla Avila, founder of Extenclip in Costa Rica.
Building a Global Partner Network to Accelerate Product Availability
Also announced today, the Visa Ready for Tap to Phone program will help to fast track global product availability and could reduce the functional evaluation for solution providers from almost two months to a few hours.
Visa Ready for Tap to Phone now enables technology companies to become Visa Ready certified, giving sellers the peace of mind that the technology solution they choose meets Visa’s high standards for security. Initial participants of Visa Ready for Tap to Phone include Cellfie, Center of Corporate Technologies M4Bank, Digitsecure, GeoPagos, IBA Group, iCARD AD Bulgaria, MYPINPAD, PayCore, Phos, Quest, Rubean, SmartPesa, SoftPos, Soft Space and Techno.
Additional Visa approved technology, acquirer and government partners include Alfa Bank Kazakhstan, BPS Sberbank Belarus, CIMB, First Data, FT Technologies, Halyk Bank, Hong Leong Bank, Kazpost, MagicCube, Maybank, Niubiz, Oschadbank, Paymentsense, PostePay, Priorbank, Promerica, Russian Standard Bank, Sberbank Kazakhstan, Symbiotic and Worldline/SIX Payment Services.
Tap to Phone: How It Works
Sellers download an app, supported by their acquirer, and after registering and selecting their participating bank, the sellers can start accepting contactless payments in just a few minutes. Tap to Phone builds on top of the security of an EMV chip transaction, in which each transaction contains a dynamic cryptogram that cannot be reused.
To see more about how Tap to Phone works, wath the video below.
Quote from partners about Visa Tap to Phone:
GeoPagos (LAC)
“Using the Tap to Phone solution, merchants can accept Visa credit and debit contactless cards without requiring any additional hardware. We trust that this technology will help expand card payments acceptance in a region where cash still dominates, such as LATAM, resulting in greater financial inclusion.” – Julian Lisenberg, COO and Cofounder, GeoPagos
IBA Group (CEMEA)
“It is amazing! A POS terminal has turned into an Android application and merchants have a near unlimited choice of Android devices that they can use. The Visa Ready- certified PIN for Tap to Phone technology breaks all transaction limits and provides a better contactless payment experience to customers. No special hardware, knowledge or skills are required to turn a regular smartphone into a POS. It means minimized time and budget for rolling out payment acceptance and easy business scaling. I am sure that Tap to Phone is a new stage of payments evolution that is now happening.” – Vadim Smotryaev, Product Owner, IBA Group
SoftPos (EU)
“SoftPos enables cash-only merchants to finally accept electronic payments. It promotes financial inclusion and limits the grey economy. SoftPos can easily be used as a stand-alone app or payment functionality integrated with 3rd party apps. No hardware is required apart from a commercial Android device with NFC and Internet access. We see strong and growing interest in the solution, which is already serving multiple companies and small businesses across Poland. In the last few months we have equipped different merchants including taxis, restaurants, couriers and small local stores with SoftPos and their response is really promising.” – Biser Jorgow, VP & CO-founder, SoftPos.eu
1 IHS Markit cited by NFC Forum; December 2019
2 “Small Merchants, Big Opportunity, The Forgotten Path to Financial Inclusion,” Dalberg
3 “Understanding The Future of International Tap to Phone Acceptance Study,” Visa
4 Visa Inc, Q2 2020 Earnings
5 “Visa Back to Business Study,” August 2020
6 Data provided by Visa’s Tap to Phone program participants from January 2019 through September 2020.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
