Visa reveals untapped opportunity for Tap to Phone solutions in APAC

By Edil Corneille

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. Consumers and businesses across the Asia Pacific have increasingly turned to digital payments during the COVID-19 pandemic. 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.

New research from Visa found that the majority (55%) of Asia Pacific consumers would likely use Tap to Phone payments, despite solutions not yet being widely available in the region. Consumer interest is strongest in Malaysia (64%), followed by Taiwan (62%), Hong Kong (62%), and India (55%). The research suggests that as Tap to Phone solutions are introduced in the Asia Pacific, consumers will embrace this new form of the contactless payments they are already accustomed to using.

“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.”

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Of consumers surveyed, ease of use was rated as the top reason that would encourage them to try tap to phone (52%). This was followed by saving time (51%) and eliminating the need to carry cash (50%). Security as an encouragement factor to adopt tap to phone payments was rated by 43% of consumers. Tap to Phone solutions brings multiple layers of security on both the buyer and seller side, to ensure that Visa’s high standards for secure payments are met. These solutions are supported by an industry standard that has been developed and published by the PCI Security Standards Council.

Visa’s research 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%.

“Customers at convenience stores, restaurants and quick-service outlets like food courts don’t want to be slowed down by a cumbersome payment transaction. And for these businesses, speed and convenience in serving their customers is a priority. Tap to Phone is a new option for these businesses to consider, especially if they’re not yet accepting digital payments. In light of the consumer demand and opportunity for businesses, Visa is collaborating with our partners to bring more Tap to Phone solutions to Asia Pacific,” said Clark.

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