Businesses are ditching card terminals for smart phones
New data has revealed that the use of tap-to-phone technology—where businesses turn smartphones into point-of-sale devices (POS)—has boomed over the last year.
In the UK, tap-to-phone adoption has exploded by 320 per cent in the last 12 months, compared to the global average growth rate of 200 per cent.
Visa research showed that small businesses pioneered the growth, making up over one-fifth of new tap sellers.
Visa also predicted that the upward trend of tap-to-phone use would continue as the digitalisation of payment services expanded.
Digital wallets have rocketed with tap-to-add card services such as Apple Pay, which are accelerating payments.
Smartphones as a form of near-field communication (NFC) technology has expanded the ability to take contactless payments for small businesses and micro sellers, who originally may have been cash only.
This comes after the UK government announced plans for a digital wallet app that will allow Brits to store government-issued documents, such as driving licences, on smartphones.
The GOV.UK Wallet is expected to offer all UK government services digitally by 2027.
Whilst this is designed for efficiency, as with many digitalisation schemes, it has received blowback over the vulnerability that comes with tech dependence.
Tap-to-phone is the ‘ultimate leveller’
Farm shop café Owner Simon Young said: “Tap to Phone has been a game changer for us.
“It’s turned every staff member’s phone into a mobile checkout, meaning we can make sales anywhere – whether at a pop-up bar, along a woodland trail or even while feeding the alpacas.”
Young added that the use of smartphones had forged a seamless experience for consumers, and helped drive sales up 40 per cent last year.
“We expect overall business growth of 20 per cent this year, and tap-to-phone will play a huge role in that.
“It’s transformed the customer experience too, cutting queue times and making purchases effortless,” he added.
Visa’s UK and Ireland managing director, Mandy Lamb, said: “Tap to Phone is the ultimate leveller for businesses.”
She added: “That’s especially the case for new businesses starting out, that can set up shop and instantly accept payments using a mobile device they already have in their pocket.
“With over 18.3bn contactless payments made in the UK in 2023 alone, it’s clear that consumers love to tap.”