Revolutionising Traditional Payments: Visa's Tap-to-Phone Solution Enables Contactless Payments for Small Businesses Worldwide

Across the globe, millions of SMEs and micro-businesses must go through the hurdles of traditional payment acceptance. In January 2020, Visa launched its Tap-to-Phone solution, and since then, more and more countries have gained access to this revolutionising technology.

What is Tap to Phone?

Through this feature, a merchant can turn to their smartphones to accept payments after downloading the necessary app. Available in numerous countries worldwide, 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 another NFC-enabled device (more about NFC technology here).

According to Paysafe, 61% of consumers shop where they can pay contactless. That is no surprise, considering that in 2020 there were over 2 billion NFC-enabled smartphones 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 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 reluctant to carry 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 digital payments because they avoid standing in long lines. Also, Tap to Phone allows travelling 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 the 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 into ZmBIZI’s smartphones. In this scenario, Paymob is the payment rail enabling ZmBIZI’s app to accept contactless payments. Thus, any merchant with a ZmBIZI smartphone has a direct card terminal without extra hardware. After the US launch, Paymob aims to expand its payment solution to UK and Europe.

Who stands to benefit?

As mentioned, the Tap to Phone technology addresses businesses of all sizes. If we take Paymob as an example, its SoftPOS solution targets retailers, gig economy workers, the hospitality and transportation sectors, and 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 that helps micro, small- and medium-sized businesses to simplify their checkout flow while improving in-person payment processes for their customers.