Contactless payments are quickly and indefinitely becoming the NEW “new norm”.

The global contactless payment terminals market was valued at $13.23 billion in 2020 and is expected to reach $51.07 billion by 2026.

As payments undergo cosmic disruption all over the world, innovative payment trends continue to transform how commerce is done day in and day out.

Crucial to economic prosperity, micro, small and medium enterprises (MSMEs) are the main segments driving innovation in the payments world. Micro merchants can make up to 95 percent of entire markets in some developing countries.

Egypt is no different.

 

Egypt is home to millions of MSMEs with millions of small, low-value transactions taking place on an hourly basis. Many of these organizations still heavily rely on cash, and for the majority, contactless payments can be costly and/or unattainable from traditional payment processing providers. To survive and prosper, micro-merchants and smaller businesses must provide digital forms of payment to their customers.

As demand for more accessible payment acceptance continues to grow, our commitment to drive financial inclusion in Egypt strengthens. In efforts to continuously fill in the gaps found in traditional payment processing, we have partnered up with Mastercard to launch our very own Tap on Phone solution. 

Tap on Phone solutions allow businesses to accept payments from any contactless card through Android NFC-enabled devices. With no extra hardware required, businesses can enable quick and convenient payment options using this off-the-shelf solution.

Let’s learn more about Tap on Phone.

 

What is Tap on Phone?

Tap on Phone is a contactless payment acceptance solution that allows merchants to accept card payments without the need for POS devices - all they need is their Android smartphones!

instead of having a POS, payments will be processed automatically through Paymob’s mobile application.

Tap on Phone uses a short-range wireless technology called NFC to make secure payments. NFC technology allows information to be transferred between the customer’s contactless card and the merchant’s smartphone without any physical contact.

Merchants can set up and use Tap on Phone in minutes, all they have to do is:

1. Download the app from Google Play Store on an NFC-enabled Android device
2. Sign up as a merchant in a few simple steps
3. Enter desired transaction amount

All the customer has to do:

→ Tap. Transaction complete.

This isn’t the full story though.

 

Tap on Phone - A Game Changer for Micro Merchants in Egypt

Micro-merchants in developing countries can be one of the core drivers of innovation in payment ecosystems. Tap on Phone technology has revolutionized the way micro-merchants do business - Allowing them to offer their services to more people, more quickly.

Freeing customers from the constraints and risks that come with cash and helping to drive more revenue into smaller businesses - these previously underserved organizations can finally start to flourish.

1. No Hardware Required

Merchants who would never have been able to consider installing (POS) terminals now have an affordable and convenient way to accept card payments. Now merchants can obtain all the features and functions of POS terminals through their Android mobile devices with zero additional hardware.

2. Broader payment acceptance

The portability of Tap on Phone empowers businesses to accept payments anywhere and anytime. Bazaars, pop-up shops, flea markets, food trucks, taxi drivers and others who take their businesses on the road will be given more payment power in their hands every day.

3. Seamless customer experiences

Tap on Phone will speed up payment transactions allowing users to tap and go in seconds, rather than having to wait in long checkout lines. With less processing and handling of cash, contactless card payments allow for quick and smooth payment experiences.

 

Is Tap on Phone safe?

Yes, Absolutely.

With the launch of PCI’s contactless payments on COTS (Commercial off-the-shelf) specification, Tap on Phone technology was officially approved in 2019. Since then, the number of solutions in development has accelerated.

Tap on Phone transactions are protected using the same security and encryption technology offered with EMV® chip cards throughout the world. Once customers tap their card into the reader, the sensitive information sent is encrypted. 

In some instances, Tap on Phone transactions can be even more secure than traditional payment processing methods. For example, processing payments using traditional cards with a magnetic stripe are more vulnerable to fraudulent attacks.

This is because the same information is transmitted every time the card is swiped, so it is easy for hackers to steal the information and use it over and over again. 

In fact, by 2024, Mastercard will stop issuing cards with magnetic stripes.

 

The pandemic has changed payments – possibly forever.

Health risks have led to more reserved physical contact during shopping transactions.

Keeping everything touchless seems to be the way forward. Perceived health and safety benefits of contactless transactions are a key aspect driving this shift in consumer behavior.

Contactless payments surged during the pandemic, and research suggests this shift may be here to stay. Forbes reports that 86% of consumers that used contactless payments for the first time during the pandemic plan to continue using them post-pandemic.

 

Moving money in a changing world

Paymob is democratizing digital payments across Egypt and the region with the aim of reducing cash dependency among SMEs. The introduction of Tap on Phone in the Egyptian market is just the start of our contactless payments journey. We are working towards availing more contactless payment acceptance solutions in the near future, enabling smart payments through other smart devices by connecting payment cards to phones and smartwatches.

 

Grow your business one tap at a time with Paymob.