The increasing consumer preference for contactless payments has driven significant growth in Tap to Phone technology. Businesses, particularly small and medium-sized enterprises, are adopting this method to streamline payment processes without requiring additional hardware. Visa announced a 200% increase in global Tap to Phone adoption, with U.S., U.K., and Brazil experiencing a combined growth rate of 234%. This adoption surge highlights the shift towards more flexible, cost-effective payment solutions.
Similar increases in contactless payment adoption have been reported in previous years, but the current growth rate surpasses earlier trends. Past reports emphasized consumer behavior driving tap-based purchases, but the latest data suggests that businesses are also integrating this solution at an accelerated pace. The shift indicates broader acceptance beyond just major retailers, now including small vendors and service providers.
How Does Tap to Phone Benefit Small Businesses?
Small businesses account for 30% of new Tap to Phone users, according to Visa. By transforming smartphones into point-of-sale terminals, these enterprises can provide a seamless checkout experience similar to large retailers. The adoption of this method eliminates the need for additional hardware investments, enabling businesses that previously operated online to transition into physical retail spaces.
“Tap to Phone is a tech equalizer for businesses. Walk into some of the world’s largest retailers or go to your local farmer’s market and they’re using this same technology to accept payments right on their phone,” said Mark Nelsen, Global Head of Consumer Products at Visa.
What Are the Use Cases for Tap to Phone?
Businesses with unique operational needs are leveraging Tap to Phone to improve customer transactions. Ariel Davis, owner of The Brooklyn Teacup, shared that this technology allows her business to facilitate in-person sales efficiently. Previously, purchases were completed through online platforms or email invoices, but the ability to accept payments via mobile devices has enhanced customer interactions.
“When you have china cups scattered everywhere, a point of sale dongle is going to get lost in two seconds,” Davis explained.
Visa has also introduced additional tap-based solutions, including Tap to Add Card, which enables users to add payment cards to digital wallets by tapping them against their phone. Since its global launch with Apple (NASDAQ:AAPL) Pay, this feature has been adopted by over 100 issuers.
“The 100 issuers that we have now, that should grow into thousands over the next couple of years,” Nelsen stated.
Visa is expanding its tap ecosystem with Tap to Confirm and Tap to Send, enhancing authentication and fund transfers. Samsung Galaxy devices will integrate Tap to Send later this year under the name Tap to Transfer. These developments indicate efforts to create a cohesive contactless payment network.
Adoption of contactless payments continues to rise, with businesses and consumers increasingly prioritizing seamless transactions. Tap to Phone’s growth reflects a broader trend of businesses seeking cost-effective solutions that do not require additional hardware. As Visa expands its tap-based services, more companies may integrate these technologies to improve customer payment experiences. The future of contactless payments will likely see further innovation to enhance accessibility and convenience.
