In the last year alone, the rise of Tap on Phone technology, which allows merchants to take payment from their customers using a smartphone, has accelerated at pace. The uptake and development of this technology is no surprise when you consider how it has eliminated the need for expensive and inefficient card terminals, which has brought increased flexibility for merchants.
But this is only the start. The abundance of devices which can integrate Tap to Pay technology is creating an entirely new, seamless payment experience. Tap on Any Device is set to be the next revolution that not only fundamentally changes the payment experience, but also promises a range of benefits for merchants and consumers.
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The impact of Tap on Phone technology
Demand for Tap on Phone technology, which transforms smartphones into terminals, has been strong for one simple reason: it offers simplicity. Merchants can use a smartphone they already have in their pocket to start accepting payments, eliminating the cost attached to purchasing and managing legacy systems.
The convenience and flexibility of Tap on Phone technology has proven especially valuable for smaller-scale merchants across a wide range of sectors. All types of merchants, from Black Cab drivers and food truck owners to tradespeople and self-employed vendors such as private tutors, can set up their business and simply start taking payment, breaking down the barriers previously faced from integrating a legacy card terminal into their operations. Not to mention, it makes it faster for customers to pay, reducing queuing and improving the overall customer experience.
A smartphone is not the only device that businesses can use as a payment terminal though. There is a growing opportunity to integrate Tap to Pay technology into a wider number of devices and spaces occupied by merchants to create even more seamless solutions. This is where the real magic is.
How Tap on Any Device technology can revolutionise payments
The payments industry has continuously adapted to the shopping habits of consumers, who increasingly opt for digital payment methods. As a result, merchants have been adopting bold technologies, from mobile point of sale to innovative checkout journeys in order to streamline shopping and optimise customer flows. that streamline shopping and optimize customer flows. Tap on Any Device represents an opportunity to build on the momentum of Tap on Phone technology It has the power to reinvent the payments process rather than merely updating it. The smartphone is not enough anymore.
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By GlobalDataAs this technology continues to develop, the number of use cases will grow too, spanning an ever-increasing number of sectors. For example, we are already seeing ‘Tap on Table’ introduced in restaurants, where customers can pay by tapping their card on the table instead of waiting for staff to bring the bill or the card machine. Another example is Tap on Mirror, whereby customers may be able to tap on a smart mirror in the fitting room or shop floor to avoid queuing to make their purchase.
Each of these examples demonstrates how Tap on Any Device can add a new layer of flexibility and, crucially, untether payments from the till altogether. Payments no longer need to happen in one fixed place, but rather where and when it is most convenient for the customer. This simplifies the process and saves customers time, helping to convert sales and keep them coming back. This technology takes us closer to making payment acceptance an invisible part of the checkout journey.
Benefits go beyond boosting customer experience
Tap on Any Device technology allows merchants across Europe to cut costs, providing them with a significant financial boost. The technology ends the reliance on inefficient legacy POS systems, which are costly to purchase and maintain, which can put a strain on bottom lines. As merchants now have the freedom to accept payments on any smart device, not just smartphones, the days of purchasing new equipment are well and truly over. Moreover, this also removes the need for additional hardware and the pain that comes with managing an inflated tech stack. All they need is a simple software integration into their ERP system, POS systems, cashiers, unattended devices or tablets; essentially in whatever device they already use to operate their business.
The technology allows merchants to harness the spontaneous nature of consumer spending and ensure they minimise the risk of losing a sale. The technology also allows businesses to free up their staff to focus on other tasks, such as replenishing stock or attending to customers. Tap on Any Device technology fits any business size – from plumbers and electricians to SMBs that want to rationalize operations and enterprises that want to restructure the way they accept payments. It’s all about a shift in business models.
Payments distributed differently
Overall, evolution in the European payments industry is driven by the ongoing shift towards digital payments. The industry needs to adapt to changing consumer behaviour, evolving regulatory requirements, and increasing competition to meet customer needs. The future lies in seamless, near invisible payments, and Tap on Any Device technology reflects this vision.
Payment services providers can join forces with independent software and hardware providers to develop joint solutions that cater for the whole operational spectrum of a business, creating convenient one-stop-shop vendor schemes. Payments will always be a part of our daily lives, and through innovation they are becoming increasingly invisible and more seamless than ever.
Yannis Larios is SVP of Strategy & Business Development at Viva.com
