Tap2Pay – Coming to a Screen Near You!
Retailers seldom have a reason to be happy about the implementation of payment technology advancements. Typically, it means added expenses for new payment equipment, new processes, new staff training, and the potential of higher transaction fees. The transition from swipe to chip cards, the acceptance of digital wallets from Apple, Google, PayPal, all have caused varying levels of heartburn to merchants in the past. This is not to say that these new technologies were not beneficial to retailers because each new process brought value. More transaction security, more consumer payment options, and more customer convenience are all quantifiable benefits to both sides of the retail counter.
Retailers can celebrate a new contactless payment technology that is rapidly making its way into retail stores that enhances the checkout experience. The new payment technology is commonly referred to Tap2Pay or SoftPos. SoftPos resides in the cloud by virtue of a secure kernel certified by the card brands and transaction acquirers. This provides secure mobile payment transactions allowing retailers to accept payments anywhere in-store. SoftPos operates on commercially available (consumer of the shelf) NFC enabled devices such as cell phones, tablets, self-order kiosks along with the existing countertop EMV terminals.
Contactless payments have demonstrated their value by delivering significantly faster transactions than legacy EMV card insertions. Moving customers through the checkout during peak sales periods is a welcome benefit to both operators and consumers alike. An additional value to retailers is taking payments virtually anywhere in-store using lower cost mobile devices. This drives faster sales without funneling customers needlessly through a checkout line. It can also provide more upsell opportunities via real-time salesfloor customer engagement.
Retailers are not the only winners using Tap2Pay. Consumers also enjoy benefits from a contactless checkout. They too have places to go and want a fast express checkout experience. Consumers that use digital wallets such as ApplePay, PayPal, GooglePay can already pay with their preferred devices like phones or wearables such as watches and wristbands. The trend to expand that convenience to the traditional card brands appears inevitable.
Additionally, as the Covid outbreak has taught everyone, the requirement for no-touch, hygienic payment transactions are a continuing mandate. This germophobic trend will persist as the cold and flu season is upon us with new contagions routinely appearing.
Tap2Pay, while currently in its nascent adoption stage, is destined to be ubiquitous in retail and beyond. The speed and convenience of contactless payments is evident. The next logical step is using your phone for processing online ordering transactions. Stay tuned!
Thomas McCole
Payment Technology Veteran
Tom@mmtmagonline.com
