After a year of development and testing, Visa rolled out its new Tap to Pay mobile payment app that will let micro-merchants and sellers worldwide quickly and securely accept contactless payments on any NFC-enabled Android device without the need for any additional hardware.
The new mobile app launches in 15 countries including Belarus, Malaysia, Peru, Russia, and South Africa, with upcoming launches scheduled in Brazil, Italy, United Arab Emirates, United Kingdom, and more. The US introduction is planned for 2021.
The program initially opens with 35 partner providers and Visa hopes to enroll more than 50 million small and micro-businesses worldwide as it expands its partner network.
How Tap to Phone works
The Tap to Phone app transforms current generation Android smartphones or tablets into contactless, or tap to pay, software-based point of sale (softPOS) terminals without additional hardware.
Sellers download an app, supported by their acquirer, and after registering and selecting their participating bank, 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, where transactions contain a dynamic cryptogram that cannot be reused.
“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,” said Biser Jorgow, VP & CO-founder of Visa partner SoftPos.eu.
Market potential
Visa estimates as many as two million Android devices could be adapted to accept softPOS mobile payments. The app does not work on iOS devices however because Apple has its own proprietary software.
“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.
There are an estimated 180 million micro and small merchants (MSM) around the world, where fewer than 10% of MSMs in many emerging markets currently accept digital payments.
“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,” Bowman added.
In a survey conducted by Visa, 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.
The new payment app could also create huge competition for other mobile payments companies with dongles and other devices such as those featured by Square and other payment providers. It will have strong appeal in Asia-Pacific and EU economies where mobile payments are more familiar and utilized by merchants and consumers.
“We believe Tap to Phone has really come into the market at an ideal time as it has helped merchants, especially smaller ones, be able to join the digitalization train and modernize their payment capabilities. Malaysia’s high contactless cards penetration coupled with Tap to Phone’s ability to directly enter PIN numbers for payment authorization means users can bank on its convenience, security and safety features, which will further spur contactless usage,” according to Joel Tay, Chief Executive Officer, Soft Space Sdn Bhd.
Partner network growing quickly
The network of Visa Ready for Tap to Phone partners initially includes 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.
More information about Visa Tap to Phone is available here.
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