A recent Visa study has shown that nearly 40 percent of Kiwi consumers are willing to use ‘tap to phone’ payments, meaning the retail industry could reduce the need for traditional point-of-sale infrastructure and bring more micro and small businesses into the digital economy.
Tap to phone payments allow sellers to accept contactless payments directly on their own Android NFC-enabled smartphone, without the need for a seperate payment acceptance terminal. Instead of tapping on a contactless card, phone or wearable on a terminal, a consumer can tap on the retailer’s smartphone to pay.
Despite solutions not yet being widely available, 39 percent of Kiwi consumers would likely use tap to phone payments. Research from Visa shows that consumers would embrace this new form of payment, with face to face transactions in New Zealand becoming increasingly contactless.
Visa country manager for New Zealand and South Pacific, Marty Kerr, says Kiwis have been fast adopters of contactless payments, particularly in the current environment.
“The use of smartphones more generally is a common daily occurrence, so we expect combining the two with tap to phone payments will be a convenient and secure choice for Kiwis.
”As sellers adapt to the rapidly changing retail environment, tap to phone opens up another door for small and micro businesses to accept digital payments in a convenient and cost effective way, enabling them to reach more customers and grow their sales.”
FinTechNZ CEO James Brown says the tap to phone payment method will be appealing to some businesses as they look for more options and choice in their everyday commerce tools.
“FinTechNZ frequently witnesses the power of financial technology in opening up new experiences and alternative ways of doing things – so it’s exciting to see new technologies on the horizon in the point-of-sale space.”
51 percent of those surveyed by Visa rated ‘ease of use’ as the most popular reason to consider tap to phone payments, while 47 percent rated security as a factor.
Visa’s research also looked at scenarios where consumers would be most likely to use tap to phone. Convenience stores were the most popular at 47 percent, followed by restaurant payments at 45 percent, small local businesses at 42 percent and food courts, markets or food kiosks at 40 percent.
“Our research highlights speed and convenience as key priorities, and we see tap to phone as a new option for sellers, of all sizes, to meet this demand, particularly in fast-growing areas like payment on delivery for food orders,” says Kerr.
Visa and its partners have launched tap-to-phone solutions in Malaysia and India, with more Asia Pacific markets to follow in the coming months.