Can mobile technology democratize payments? – Detachable sheet
Contactless payments have proliferated throughout the pandemic. The use of contactless payments has increased by 150% in the US since March 2019, and the UK saw £66.5 billion in contactless transactions in the first six months of 2021 alone.
Amidst this change, it is becoming more difficult for small businesses and micro-merchants to stay competitive and retain their market share against established players and tech giants like Amazon. Many SMBs only accept cash and cannot afford feature-rich payment terminals that accept contactless payments. Processing payments on the go, in settings such as outdoor events, street vending and deliveries, can also be a challenge.
Tap to mobile technology (also known as ‘tap to phone’ and ‘tap to pay’) – which turns smartphones into payment acceptance devices – could simplify payment processing for SMEs, as it is easy to set up and requires no additional hardware.
To use tap to mobile, SMB owners can simply download an app to a smartphone and create a merchant account. Once connected to the payment processor, the phone automatically receives its provisioning credentials. This allows small business owners and micro-merchants to accept payments from cards or contactless devices such as phones, tablets and wearables in minutes.
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