Tap to Phone Technology Enhances Payment AcceptanceWendy Wang
Tap to Phone Technology Enhances Payment Acceptance
When mobile payments first gained popularity, payment processing providers made their services easy and convenient for merchants by offering free hardware that turned smart devices into mobile payment terminals. Though today, many merchants are realizing the benefit of “frictionless” technologies— advances that simplify the payment process by removing steps, like swiping a credit card, that could create barriers to commerce or produce disjointed customer experiences. The adoption of frictionless payment technologies, such as mobile apps and wallets, contactless cards, and near field communications (NFC), have helped merchants deliver seamless checkout experiences, increased the number of completed payments, as well as grow sales — not to mention deliver contactless options in the wake of the COVID-19 pandemic.
One of the latest contactless payment processing technologies on the market is tap to phone. This technology enables merchants to use their smartphone or tablet to accept card or digital wallet payments with a simple tap.
The implementation of tap to phone into business operations not only makes payment processing easier and faster, but it also attracts customers to the store and makes sales more efficient. A study by PYMNTS found that 60% of consumers would be willing to shop in the brick-and-mortar store if they offered digital payment options, while another study found that for 57% of consumers, the availability of digital payment options will determine where they decide to give their business. Tap to phone technology could revolutionize how merchants conduct their business, providing a myriad of benefits that make the investment worthwhile, especially for small businesses and micro-sellers.
What is Tap to Phone Technology?
Payment processing technology is ever-evolving, and the latest tech is tap to phone, which allows a business’s smartphone to accept card payments without the need for external hardware. Essentially, the phone becomes a point of sale terminal. Similar to how customers use their mobile wallets or NFC chip cards by tapping their phone or card against a terminal, customers tap their card over the merchant’s mobile smartphone or tablet. However, with tap to phone, merchants do not need credit card terminals. This new technology reduces hardware costs, prevents lost sales, and improves cash flow— saving sellers’ money and time.
- No Credit Card Terminal Necessary: One of the greatest benefits of tap to phone technology is getting rid of bulky payment terminals. Businesses are readily performing more and more tasks and operations with smartphones because of their ease of use and multi-functionality. Whether merchants are using a mobile phone for line busting or tablets at check-out counters, taking payments on mobile is a logical next step. Thanks to new regulations for PIN entry on touchscreens, merchants can now accept payments on their smart devices without any extra hardware. Tap to phone clears up desk space and makes integration easy since external hardware and dongles are unnecessary.
- Cost-Effective: Tap to phone makes it possible for merchants to accept contactless payments cost-effectively. The time and money spent on installing payment terminals are eliminated. It also allows merchants to provide faster checkouts in-store and pick-ups at the curb. These features are essential to both merchants and consumers alike, especially during an age when everyone is constantly on the go. The transaction needs to be completed efficiently so that both parties can be on their way.
- No Setup: Since physical POS terminals are unnecessary, the setup of tap to phone is simple. Sellers can simply download an application supported by their tap to phone acquirer, such as Cardknox. Once installed, they can start accepting payments from consumers!
- 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 now carry cash, and 58% plan to stop using it completely. Since less consumers are carrying cash, merchants need to be prepared to accept card and mobile wallet payments. Tap to phone makes this possible with the added benefit of simplifying the process of balancing the books in a timely manner.
How Tap to Phone Technology Works
With tap to phone, Android and iOS smartphones and tablets are transformed into software-based, point-of-sale (softPOS) terminals. Contactless payments can be accepted anytime and anywhere. To access this capability, merchants download an app, which their acquirer supports, and then select their participating bank within the app. Now, they are ready to accept contactless payments from customers. 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 (and more):
- 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. According to a recent PYMNTS study, 46% of consumers prefer digital payments because it helps them avoid standing in lines. If customers frequently have to stand in a retail store’s lines, they’ll begin to view that store negatively. They could express their 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. With this new technology, employees can check-out customers efficiently, anywhere in the store.
- Pay at Table: Restaurants can streamline the payment process by equipping servers with phones or tablets that can accept tap to phone payments from customers. This would clear tables faster, increase customer turnover and give diners a more positive experience.
- Delivery Services: Consumers don’t need to have cash on hand to pay for delivery or tipping. If the employee is equipped with a smartphone, they can accept a contactless payment from the customer with a simple tap of their card.
- Pop-Ups: Direct-to-consumer brands that started on the internet can benefit from tap to phone technology when they open pop-ups or small stores. Hardware or payment accessories that take up too much space or are easily lost will no longer be a struggle.
- Food Trucks: Food trucks can minimize the amount of cash on hand by using tap to phone tech.
Developers: Integrate Tap to Phone Seamlessly
Developers can use their own app to integrate the tap to phone processing feature into their clients’ apps. By partnering with Cardknox and utilizing the Cardknox Mobile SDK, the process is easy and seamless. With our hassle-free integrations, you’ll be able to support card-present and card-not-present mobile transactions, now even more efficiently with tap to phone and no hardware.
Accept Mobile Payments with Tap to Phone
Mobile payments are increasing in popularity for both the consumer and the merchant. Now, with tap to phone technology, merchants can accept money on their business’s smartphone. This cost-effective option saves time with no external terminal setup and improves cash flow by enabling faster checkouts. If you’re ready to turn your business’s smartphone or tablet into a POS system, contact Cardknox to adopt the new tap to phone technology.