Transaction Trends

SoftPOS, Tap to Pay, and Tap on Mobile are ushering in a new era of in-store customer checkout experiences. Termed as a game-changer, this innovative solution, referred to as Tap to Pay (T2P), is simplifying transactions.

SoftPOS disrupts the traditional point of sale (POS) by converting mobile devices into POS terminals capable of contactless payments through near field communication (NFC). This marks a significant shift in the POS landscape, offering retailers a software-led alternative to traditional hardware setups.

The adoption of T2P in the United States is in its early stages, leaving the question of whether merchants will embrace it as a replacement for traditional POS systems or as a supplementary payment method.

Below is a summary of the white paper. You may download the complete white paper here.

What is SoftPOS / Tap to Pay / Tap on Mobile?
T2P is an in-store checkout solution eliminating the need for bulky POS systems. Apple introduced T2P on iPhones in 2022, following its acquisition of Mobeewave, the company credited with creating the technology that enables devices to accept contactless card payments.

While traditional POS setups have their place, T2P solutions offer benefits like line-busting, endless aisle shopping, and versatility for pop-up or offsite sales. In some cases, T2P can even serve as the primary POS solution for merchants.

T2P solutions enable merchants to accept contactless payments on smartphones or tablets using the existing NFC chip, eliminating the need for external hardware. This seamlessly integrates with contactless infrastructure and introduces a new terminal type without requiring changes for issuers or cardholders.

T2P Security
T2P on iPhone prioritizes payer privacy, securing transaction information and payment card details by utilizing the Secure Element. External assessments from accredited labs have garnered approval from major card issuers.

Built on the mobile payments on commercial off-the-shelf (MPoC) security standard from the Payment Card Industry Standards Council (PCI SSC), the security of T2P technology brings flexibility, support for various payment acceptance channels, and streamlining of the certification process.

Conclusion
In conclusion, SoftPOS, Tap to Pay, and Tap on Mobile are shaping a future where seamless, secure, and flexible checkout experiences are the norm. Streamlining the checkout process promises increased efficiency and customer satisfaction, driving sales from small businesses to major retailers. With increasing adoption and major players contributing to T2P solutions, it is not a matter of “if” but “when” these solutions become mainstream at shopping malls, Main Street U.S.A., farmer’s markets, pop-up locations, and anywhere else somebody wants to make a purchase.

To download the full version of the white paper, click here.