Making the Most of Tap-to-Phone Technology

Digital wallets are made possible by a chip in smartphones that enables the phones to function like payment cards when they’re tapped on an accepting terminal device. Now those same chips, utilizing near-field communication technology, have been unlocked by Apple and Android to receive contactless data as well, enabling the phone to function as a payment acceptance device. Merchants can now use their own smartphones as payment terminals to accept contactless card payments from customers without the need for a separate terminal or peripheral device. 

This Javelin Strategy & Research report looks at how the technology can benefit a range of parties: merchants, who can take payments in various locations rather than anchoring them in a single place and realize cost savings; consumers, who can pay in locations that are convenient and more secure; and banks, which can capitalize on customers who are part of the gig economy by providing payment acceptance tools that compete with those offered by fintechs.

Key questions discussed in this report: 

• Who will benefit most from tap-to-phone technology? 
• How can banks best profit by offering tap-to-phone features? 
• Can independent software vendors benefit from creating a tap-to-phone extension for their point-of-sale platforms? 
• Will enterprise merchants find a use for tap-to-phone functionality?

Companies Mentioned: 

Autobooks, Block Inc., Delta Airlines, Elavon, Home Depot, JPMorgan Chase, MagicCube, Square, TD Bank, U.S. Bank, Visa, Zebra Technologies