In this technologically advanced world, the methods used for making payments has become so exceptional that instant payments has become completely effortless. Right from small scale vendors to shopping malls, everywhere we see QR codes these days. Let’s take a deeper dive into the modern world of payments and understand tap on the phone payment technology which is the talk of the town.
What is Tap on the Phone Payments?
The capabilities to change your smartphone and tablet into an instant payment gateway, transferring any amount of money from one account to another is the quirk of Tap on the phone payments. The only condition to make these funds transfer is to have two devices with NFC nearby where one is sending a set amount and the other end receiving it. This wonderful technology turns any smartphone or tablet into a point-of-sale console without the requirement of additional gadgets.
It feels like magic when you experience the way tap on the phone payments work. The process is so smooth and effortless that once you start making such payments there is no looking back to other mundane payment modes again. So, how do we go about doing it?
· The merchant or seller enters the amount of trade or sale in the dedicated app for tap on the phone payments
· The buyer or customer taps the debit/credit card on the device used by the business.
· Boom! Instantly money is transferred and the purchase is successful.
· The device then automatically generates a physical and a digital receipt to acknowledge the purchase.
These transactions follow the same process used by the POS method of payments and are secured exactly the way an EMV chip transactions are secured.
Rapid raise in this method of payment right now, but why?
The time has come where contactless payments are at the edge of every customer preference and businesses need to adapt their payment methods to cater to the customers choice of making payments. Top debit and credit card service providers have acknowledged the fact that 70% customers would prefer to continue using contactless payment methods even after the pandemic situation settles down. The reason being the dexterity of using these methods bringing comfort to those asking and making payment.
It is a strong belief that tap the phone payment would pick up threads of population who have never experienced such payments to become an active user of the service. The adoption of such payment methods were viral in the Europe, Canada and APAC markets compared to the slow growth in such payment schemes in the US.
A forecast of where these payment methods are going to have an impact
Payment of Delivery Business
Whenever we hear the phrase “Payment on delivery” our thoughts automatically shift to shopping online. This would be a breakthrough method of payment for those businesses who are mostly online sellers and depend on E-Commerce platforms to take customer orders and provide payment systems when delivered at customer residences.
Cashless Point of Sales
Many large-scale organizations have brought the culture of cashless modes of payments as their primary method of receiving money. Some examples are businesses which provide gift cards and wallet services where you can pre load hard cash into digital money and pay at POS systems with wallets and QR codes.
Small scale merchants representing 40% of the GDP in blooming industries do not have these payment capabilities. When tap on the phone becomes the local method of payments, it would enable even small traders and local market vendors to accept digital payments.
A Fruitful Back-Up
Serving as a great back up for situations when the original point of sale system fails to take payments due to technical glitches, tap the phone payments could serve as the perfect solution to receive instant payments is the most secure manner.
Will Tap on the Phone Payments Succeed in the Long Run?
It is rightful to say that businesses and profit-making organizations cannot afford to lose opportunities while making sales. To reduce this unfavourable scenario, the perfect and affordable solution is to make sure every business can provide an alternative, which can reduce friction with customers. While tap on the phone payments are undeniably the prefect solution, banks, financial organization and fintech’s need to provide this arch technology as a powerful method to retain and upgrade live happening payments within their league towards a happy payment experience.