Visa’s Tap-to-Phone technology has seen a threefold increase in adoption over the past year, driven by widespread support from millions of merchants and consumers alike.
Tap-to-Phone transforms any smartphone into a payment terminal using its near-field communication (NFC) capabilities. Unlike traditional tap-to-pay technology—where an NFC-enabled payment terminal read a card’s credentials when tapped—Tap-to-Phone allows the device itself to function as the terminal, enabling it to read tapped cards directly.
The pilot version of the service launched in the United States in 2021. Today, the U.S. is among the top three countries for Tap-to-Phone usage, along with the UK and Brazil.
“Several factors have driven the growth here,” said Don Apgar, Director of the Merchant Payments Practice at Javelin Strategy & Research. “Apple has finally unlocked the NFC chip on iPhones to enable developers to access it for Tap-to-Phone tech. JPMorgan Chase and U.S. Bank have started offering apps to small businesses with their merchant accounts, while fintechs like SmartCube are creating apps for enterprise merchants.”
A Boon to Small Retailers
According to Visa, nearly 30% of Tap-to-Phone sellers are new small businesses. This technology allows them to adopt the latest payment solutions without requiring significant investments in additional hardware. The payments giant highlighted the experience of The Brooklyn Teacup, a vintage china shop in New York City, whose owner was able to open an in-person studio for customers without needing a traditional computer setup or register.
“For small businesses, especially the very small end that includes the creator economies and side hustles, merchants can easily accept card payments anywhere on the same smartphone they already have in their pocket,” said Apgar. “This tech is driving payment acceptance growth like Square did when it first debuted, except without the need for a dongle.”
Enterprise merchants are also leveraging Tap-to-Phone by equipping employees with compatible devices for work-related tasks. Home Depot, for example, provides staff with Tap-to-Phone devices, allowing them to accept payments anywhere customers are, rather than being confined to register lanes.
Beyond the Merchant Class
The use cases extend beyond retail and into other industries. Delta Airlines now issues company iPhones to all flight attendants to manage schedules, access the company intranet, and perform other work-related tasks.
Previously, planes had dedicated payment terminals on board for in-cabin purchases, including meals and beverages. However, last year, Delta added Tap-to-Phone on the flight crew’s iPhones. This not only eliminates the need for dedicated payment devices, but also enhances the utility of the existing fleet of company iPhones, enabling the cabin crew to operate more efficiently.
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