According to a report published by the Discover Global Network, contactless sales volume increased 260% year-over-year from 2020 to 2021. This spike in popularity can be attributed to technological advances that make mobile point-of-sale software better than ever, as well as consumers’ desire for no-touch payments during the COVID-19 pandemic.
Fast, secure, and convenient — this is how consumers have come to view contactless payments. The proof is all around us: During the pandemic, digital wallet use rose 43.5%. What was once a novel form of payment acceptance is now the preferred method for consumers around the world.
This brings us to Tap to Phone technology, which is the latest advance in the contactless payments space. In this article, we’ll dive into the origins of Tap to Phone, the role it will play in the customer experience (CX) revolution, and tips for implementation.
The rise of contactless payments
In recent years, the widespread adoption of contactless payment methods, driven by advances in NFC (Near Field Communication) technology, has transformed the way consumers make purchases. Secure transactions can now occur with a simple tap or wave — almost as if by magic.
Driven by the need for safer and more hygienic payment options, consumers during the pandemic further accelerated the transition to contactless payments. Thanks to their inherent convenience and speed, this payment method has set a new standard in modern commerce.
Understanding Tap to Phone technology
Tap to Phone empowers businesses to accept contactless payments without traditional point-of-sale hardware. By harnessing this software-based point-of-sale (softPOS) technology, merchants can eliminate the need for extra equipment and enable customers to simply hover their phones over theirs to complete a transaction. Whether it’s phone to phone, phone to tablet, card to phone, or card to tablet, there are still plenty of options available to consumers. But unlike in years past — and thanks to softPOS solutions — merchants are no longer tethered to physical terminals.
The CX revolution and why it matters
The CX revolution refers to the significant shift in the business world towards prioritizing and enhancing the customer journey. This movement has gained momentum over the past decade as a response to technological advancements and increased competition.Â
Today, every brand interaction matters. As consumer expectations have evolved, the demand for convenience and speed in payments is at an all-time high. An exceptional CX journey is no longer a nice-to-have — it’s now a strategic differentiator. Consumers expect fast, frictionless, and personalized journeys, and they will no longer settle for less.
Tap to Phone and CX enhancement
According to Visa, businesses and customers around the world are eager to adopt Tap to Phone. During the pandemic, consumer demand for a touchless, cashless experience drove innovation in payment methodologies, including the advent of softPOS solutions. Flash forward to today, and Tap to Phone is empowering merchants to use their own smartphones to accept payments from customers — simply by downloading an app. Customers can then make safe payments with just a tap of their contactless card or phone. This reduces friction at the make-it-or-break-it CX touchpoint: the point of sale.
The future of Tap to Phone
Year over year, contactless payments usage continues to surge. In fact, the Consumer Financial Protection Bureau reports the value of digital wallet transactions will grow over 150 percent by 2028. With Apple and Google dominating the smartphone operating system market, it’s safe to say that these tech giants will exert significant influence on the payments industry and the evolution of open banking.
Businesses stand to benefit greatly from adopting Tap to Phone technology. Its advantages include reduced operational costs, increased sales opportunities, and improved customer loyalty. As time progresses, these advantages are expected to compound, making it an increasingly attractive option for merchants.
Moreover, the future of Tap to Phone holds exciting possibilities for further innovations. This could involve the integration of biometric authentication methods, seamless alignment with emerging technologies, and other enhancements that bolster security and convenience. Even better, Tap to Phone is poised to accelerate financial inclusion by providing access to digital payment solutions for underbanked populations, thereby contributing to a more inclusive and accessible financial ecosystem.
Tips for implementing Tap to Phone
With the right payments partner, enabling Tap to Phone is easy. Merchants can integrate the solution with zero disruption to their processing flow, and there’s no customer set-up required. Likewise, developers looking to offer this functionality to their merchants simply need to choose a reputable provider. The right partner will handle all the necessary security considerations, streamlining workflow and compliance.
How Sola can help
Embracing Tap to Phone technology is a strategic move that positions you at the forefront of the current financial landscape. By integrating this solution into your payments flow, you not only meet the demand of modern consumers but also demonstrate your commitment to staying innovative and customer-centric. For help getting started, reach out to our dedicated team today. They’ll be able to provide you with comprehensive support, from initial setup to ongoing optimization.
