Contactless Android format benefits SMEs
Visa is bringing its popular Tap to Phone technology to the U.S. Already available in 30 countries, the payment platform allows SMEs to use Android phones and an app as point-of-sale machines for accepting card payments. ZmBIZI is providing the software that makes it possible.
Tap to Phone will have a trial run in Washington, D.C., before rolling out in five other major U.S. cities, Visa announced. Atlanta, Chicago, Detroit, Los Angeles, and Miami merchants will receive Tap to Phone capability over the next few months.
“The way we shop and pay has forever changed. During the pandemic, tapping to pay and contactless checkout became more commonplace – and are now expected,“ said Mary Kay Bowman, global head of buyer, seller, core and platform products, Visa. “With our technology, networking and community resources, we’re hoping to empower small businesses everywhere to meet their customers in the next phase of digital-first commerce.”
Like remote work and other tech-driven trends, mobile pay saw widespread adoption accelerate in 2020 because of the global COVID-19 pandemic. Worldwide, contactless payments topped $2 trillion in 2020, nearly double what they were the year before. They’re projected to approach $2.5 trillion in 2021.
A Visa study published in 2020 found that 48% of U.S. consumers said they wouldn’t shop at a store that offered only payment methods that required contact with a cashier or communal machine. Cash transactions were down 69% last year, partly on concerns that bills might help spread COVID-19.
Large businesses can afford POS machines that accept contactless payments, but they can be a heavy burden for small and medium enterprises that lack the capital and space for terminals. Tap to Phone will give them a way to make payment convenient for customers, which should lead to increased spending.