Visa Pushes for Greater Availability of Tap to Phone Payment Solutions in APAC

Visa Pushes for Greater Availability of Tap to Phone Payment Solutions in APAC

by September 3, 2020
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Visa is calling on the payments industry to accelerate the availability of Tap to Phone solutions in order to bring more micro and small businesses into the digital economy.

Tap to Phone enables sellers to accept Visa contactless payments directly on their own Android NFC-enabled smartphones, without the need for a separate payment acceptance terminal. This eliminates the need for expensive point-of-sale infrastructure.

The Visa Asia Pacific Tap to Phone study was conducted by YouGov research between 16 to 20 July 2020, among 6,832 adults ages 18+ in AustraliaHong KongIndiaMalaysiaNew ZealandSingapore and Taiwan.

The research found that the majority (55%) of Asia Pacific consumers would likely use the Tap to Phone payment solutions despite it not being widely available in the region. Consumer interest is strongest in Malaysia (64%), followed by Taiwan (62%), Hong Kong (62%), and India (55%).

In Malaysia where this payment method has the strongest interest, local payments firm Soft Space has pioneered the roll-out through partnerships with Malaysia’s domestic payment network, Paynet, Maybank and CIMB.

It also suggests that as the solutions were introduced in Asia Pacific, consumers will more readily embrace this new form of the contactless payments which they are already accustomed to using.

Chris Clark

Asia Pacific has led the world in adopting contactless payments, which now account for around 44% of face-to-face Visa transactions in the region, climbing to over 70% in a number of key markets,”

said Chris Clark, Regional President, Asia Pacific, Visa.

“The consumer experience with Tap to Phone payments is very similar, including the security features. Instead of tapping your card, phone or smart device on a point-of-sale terminal, you tap on the seller’s smartphone to pay. For the seller, this means they can accept digital payments without having to get a separate terminal. For micro and small businesses, Tap to Phone is a cost-effective way to accept Visa and enjoy the benefits of digital commerce.”

 

In addition to simplifying point-of-sale infrastructure for businesses, Tap to Phone payments bring benefits to consumers. Of consumers surveyed, ease of use (52%) was rated as the top reason that would encourage them to try it. This was followed by saving time (51%), eliminating the need to carry cash (50%) and security factor (43%).

The solutions are said to bring multiple layers of security on both the buyer and seller side, as losing personal and financial information were named as the top concerns around using Tap to Phone.

Each solution undergoes an intensive certification process including a security assessment by an accredited expert security lab. These solutions are also supported by an industry standard that has been developed and published by the PCI Security Standards Council.

Convenience stores, restaurants and food courts popular settings for Tap to Phone

Visa’s research also looked at where consumers would be most likely to pay via Tap to Phone. Convenience stores were cited by 59% of survey participants, reflecting the desire for quick, easy transactions. Over half (56%) said they would want to be able to pay at a restaurant while seated at the table. Food courts, street stalls and kiosks were the third most popular venue at 52%.

Visa is working with and has certified nine technology providers and is partnering with many acquirers and fintechs to bring the solutions to market. They have launched the Tap to Phone solutions in Malaysia and India, with more Asia Pacific markets to follow in the coming months.

On a similar note, Visa previously shared key findings on how the spending habits and behaviours of Singaporean consumers are changing as operating in the ‘new normal’ takes shape across the globe.

Featured Image: VISA

Print Friendly, PDF & Email


  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •