Visa calls on the payments industry to accelerate the availability of Tap to Phone solutions to bring more micro and small businesses into the digital economy.
Tap to Phone allows sellers to accept Visa contactless payments directly on their own NFC-enabled Android smartphones, without the need for a separate payment acceptance terminal. This eliminates the need for expensive point of sale infrastructure.
The Visa Asia Pacific Tap to Phone study was conducted by YouGov Research between 16 and July 20, 2020, among 6,832 adults aged 18 and over in Australia, Hong Kong, India, Malaysia, New Zealand, Singapore and Taiwan.
Research has found that the majority (55%) of Asia Pacific consumers would likely use Tap to Phone payment solutions although they are not widely available in the region. Consumer interest is strongest in Malaysia (64%), followed by Taiwan (62%), Hong Kong (62%), and India (55%).
In Malaysia, where there is the most interest in this payment method, local payment company Soft Space has pioneered the deployment through partnerships with Malaysia’s national payment network, Paynet, Maybank and CIMB.
This also suggests that, as the solutions were introduced in Asia Pacific, consumers will more easily adopt this new form of contactless payment which they are already accustomed to using.
“Asia Pacific has been the global leader in the adoption of contactless payments, which now account for approximately 44% of Visa face-to-face transactions in the region, reaching over 70% in a number of key markets ”,
noted Chris clark, regional president, Asia Pacific, Visa.
“The consumer experience with Tap to Phone payments is very similar, including security features. Instead of tapping your card, phone, or smart device on a point-of-sale terminal, you tap the seller’s smartphone to pay. For the seller, this means they can accept digital payments without having to purchase a separate terminal. For micro and small businesses, Tap to Phone is a cost effective way to accept Visa and enjoy the benefits of digital commerce.
In addition to simplifying the point-of-sale infrastructure for businesses, Tap to Phone payments offer benefits to consumers. Among consumers surveyed, ease of use (52%) was ranked as the top reason they would try it. This was followed by saving time (51%), eliminating the need to carry cash (50%) and a safety factor (43%).
The solutions would provide multiple layers of security on both the buyer’s and the seller’s side, as loss of personal and financial information has been identified as the top concern when using Tap to Phone.
Each solution goes through an intensive certification process including a security assessment by an accredited expert security laboratory. These solutions are also supported by an industry standard that was developed and published by the PCI Security Standards Council.
Convenience Stores, Restaurants and Food Court Popular Settings for Tap to Phone
Visa’s research also looked at where consumers would be most likely to pay through Tap to Phone. Convenience stores were cited by 59% of survey participants, reflecting the desire for quick and easy transactions. More than half (56%) said they would like to be able to pay in a restaurant while sitting at the table. Food courts, street stalls and kiosks were the third most popular location with 52%.
Visa works with and has certified nine technology vendors and partners with numerous acquirers and fintechs to bring the solutions to market. They launched the Tap to Phone solutions in Malaysia and India, with more Asia Pacific markets to follow in the coming months.
On a related note, Visa previously shared key findings on how the spending habits and behaviors of Singaporean consumers are changing as the functioning of the “new normal” takes shape across the world.
Featured Image: VISA