Tap to pay and the rise of contactless payments

Contactless payments are rapidly becoming the preferred method for in-person transactions worldwide. According to Mastercard, 50% of global in-person transactions are now contactless, and this trend continues to rise. Among the many forms of contactless payments, tap to pay stands out as a fast, secure, and widely accepted option. It allows customers to make purchases by simply tapping their NFC-enabled cards or smartphones on a payment terminal, offering a seamless experience that’s hard to beat.

In this article we’ll explore the benefits of tap to pay, focusing on its convenience, enhanced security features, and broad acceptance. 

How tap to pay works

Tap to pay uses Near Field Communication (NFC) technology to facilitate contactless transactions. Here's a brief look at the process:

1. Initiate payment: The customer taps their contactless card or NFC-enabled device on a payment terminal.
2. Proximity requirement: The device must be within a few centimeters of the terminal to initiate the transaction securely.
3. NFC chip activation: The NFC chip in the customer’s device activates and transmits payment data.
4. Data transmission: The payment data is sent to the merchant’s stationary or mobile POS terminal via short-range wireless signals.
5. Secure data processing: The terminal processes the transaction by verifying the information and authorizing the purchase, generating a unique one-time code for that specific transaction.
6. Contactless convenience: The transaction is completed in seconds, without any need for physical contact or manual entry of payment details.

Benefits of tap to pay: Convenience, speed, and security

When it comes to making payments, everyone loves an option that's quick, easy, and safe. That’s exactly what tap to pay delivers. Imagine being able to pay for your morning coffee or grab lunch on the go with just a simple tap of your phone or card—no need to fumble with cash or punch in a PIN. This convenience is why tap to pay has taken off, offering not only a faster way to pay but also the added peace of mind that comes with advanced security features. Let’s dive into how tap to pay benefits both you and your customers by blending convenience, speed, and security into one seamless experience.

Convenience and speed 

Tap to pay offers a quick, hassle-free payment experience. Customers can complete transactions with a simple tap, which significantly reduces wait times at checkout. For businesses, this means more transactions processed during peak times, leading to shorter lines, happier customers, and less stress on staff. With contactless transactions, businesses can streamline their operations, enhance customer satisfaction, and increase efficiency.

Enhanced security features

Tap to pay is not only convenient but also highly secure. NFC technology ensures that the payment data is exchanged only within a short range, reducing the risk of interception. Additionally, tap to pay uses advanced encryption and tokenization techniques to safeguard sensitive information.

These are some of the reasons why NFC technology is considered a safe method of payment: 

• Tokenization: During transactions, sensitive payment data is replaced with a unique token, making it useless to hackers outside that specific transaction.
• Dynamic Data Authentication (DDA): Each transaction generates a one-time cryptographic code, preventing fraudsters from reusing transaction data.
• Biometric Authentication: Many forms of digital wallets incorporate biometric features like facial recognition or fingerprint scanning for added security.
• Secure element (SE): A tamper-resistant chip securely stores card data, ensuring that sensitive information is protected.
• Real-time monitoring: Transactions are continuously monitored for suspicious activity, allowing for quick detection and prevention of potential fraud.
• Two-factor authentication (2FA): This extra verification step, such as a one-time password sent to the user’s mobile device, adds another layer of protection.
• Contactless payment limits: Transaction limits help minimize the impact of potential fraud by capping the amount that can be spent using tap to pay.

These features make tap to pay a reliable option for both customers and merchants, ensuring that transactions are completed securely and efficiently.

While the technology is secure, businesses should remain vigilant against potential risks, such as relay attacks and data breaches. Keeping systems updated and compliant with the latest security standards is crucial to mitigating these risks.

Growing popularity of tap to pay

The adoption of tap to pay is on the rise. Juniper Research estimates that 94% of smartphones globally are NFC-enabled, and this number is expected to increase to 99% by 2027. As more people adopt smartphones and contactless payment methods, tap to pay is becoming a standard payment option across various industries.

Businesses that embrace this technology can align with modern payment trends and meet customer expectations. Salesforce reports that 67% of customers now have higher expectations for a seamless payment experience. Offering contactless payments demonstrates that your business is staying current with the latest technology, improving customer satisfaction and loyalty.

Broad acceptance

One of the key advantages of tap to pay is its widespread acceptance. From grocery stores to coffee shops, major retailers to small businesses, tap to pay is increasingly available wherever payments are made. Whether customers use digital wallets like Apple Pay and Google Pay, contactless cards, or even wearable devices like smartwatches, they can easily and securely complete transactions at a wide range of merchants.

By offering tap to pay, businesses can appeal to a broader customer base and provide a convenient payment option that suits various preferences. With consumers increasingly favoring contactless options, businesses that don’t offer tap to pay risk missing out on significant revenue.

Offer tap to pay with Sekure Payment Experts 

Tap to pay technology is here to stay, offering significant advantages for both businesses and customers. However, adopting contactless payments also introduces certain risks, such as relay attacks and concerns over card data security. It's crucial to understand these risks to make informed choices about the best payment solutions for your business.

That’s where Sekure can help. Our personalized consultations are designed to find the optimal payment solutions for your business, ensuring they align with your goals. With our Rate Sekurity Guarantee®, you'll get both the best solutions and the lowest possible credit card processing rates. Our experts provide transparent advice on rates and equipment, so you get exactly what you need.