Visa’s Tap to Phone technology can turn your smartphone into a point-of-sale (POS) device.

How does it work? Businesses of all sizes can now accept payments without incurring any additional costs or overheads by simply using their smartphones. All you have to do is download an app and you can accept payment on your own device.

Who is using the technology? 30% of Tap merchants worldwide are new small businesses, which means that Visa is providing access to innovative tools that empower small and medium-sized businesses (SMBs) around the world to start accepting contactless payments by using their NFC-enabled smartphones.

Why is this a good thing? It’s not just good, it’s a game changer for both merchants and consumers. It eliminates the need for cash and money transfers, and it’s secure, cost-effective and convenient. Customers are given a more seamless and secure purchasing experience and, as a result, small business owners can operate more efficiently and grow their businesses faster. The acceptance of digital payments has significantly reduced transaction costs and enhancing operational efficiency for SMBs.

Consider this: SMBs report that digital payments cost 57% less than traditional payment methods like cash and checks. Processing USD 100,000 in digital payments takes only 189 hours compared to 542 hours for non-digital payments. This efficiency translates into increased revenue, with SMBs experiencing an average sales boost of 8%, and medium-sized businesses seeing up to 17%.

How is this playing out worldwide? India's Unified Payment Interface (UPI) has revolutionized transactions by enabling real-time payments, while Brazil's Pix system has similarly transformed the financial landscape. In China, digital wallets like AliPay and WeChat Pay dominate, offering seamless QR code payments. These innovations not only streamline operations but also enhance customer experience, driving loyalty and repeat business.

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