Tap to Pay Brings Mobile Payment Acceptance to the Banking App

Forays by Chase and TD Bank into mobile point-of-sale payment acceptance in the banking app provide a glimpse of how banks and credit unions can counter the competitive threat from fintechs such as Block, Shopify, and PayPal, which use payment acceptance services to disintermediate financial institutions. By adding tap-to-pay capabilities to their broad portfolios of traditional banking products, FIs can target the fast-growing segment of microbusinesses, sole proprietors, and freelancers hungering for simple, effective ways to accept card payments. Javelin Strategy & Research explores the implications of Tap to Pay rollouts from Chase and TD Bank, the capabilities required to make such offerings competitive, and how banks can leverage their natural advantages to effectively integrate mobile point of sale into their banking apps.