Tap To Pay: A Guide For Merchants

Tap to Pay lets businesses accept contactless, in-person payments using a compatible smartphone and payment app with no separate card reader required.

Customers can tap a contactless credit or debit card, smartphone, or smartwatch against the merchant’s phone to complete a payment. Because Tap to Pay transactions are treated as card-present payments, processing rates are generally similar to other in-person transactions.

What Is Tap To Pay?

Tap to Pay uses the NFC capabilities built into compatible iPhones and Android devices to accept contactless payments.

Merchants need a supported phone, an internet connection, and a payment app that offers Tap to Pay. Customers can pay with contactless cards or supported digital wallets, such as Apple Pay and Google Pay.

Why Use Tap To Pay?

There are multiple benefits to using Tap to Pay:

• No Additional Hardware: Businesses can accept contactless payments without purchasing or carrying a card reader.
• Quick Setup: Once the account and device are approved, merchants can begin accepting payments through a supported app immediately.
• Portable Payments: Tap to Pay works great for mobile businesses, events, tableside service, and sales made away from a countertop.
• Cheaper Processing: Most providers treat Tap to Pay as an in-person card-present transaction, although some charge an additional authorization fee.

How Does Tap To Pay Work?

The exact process varies by payment app, but it generally works like this:

• Enter the sale into your POS or payment app.
• Select Tap to Pay as the payment method.
• Ask the customer to hold a contactless card, phone, or smartwatch near your phone.
• Wait for the payment confirmation before completing the sale.

No card information is manually entered, and the transaction doesn’t require an external card reader.

What Payments Can You Accept?

Tap to Pay generally accepts:

• Contactless credit and debit cards
• Apple Pay
• Google Pay
• Other supported NFC-enabled digital wallets

Supported card brands and wallets vary by payment provider, country, and device. Tap to Pay can’t read a traditional chip or magnetic stripe, so customers need a contactless payment method.

Which Providers Offer Tap To Pay?

A growing number of payment providers offer Tap to Pay, including Square, Stripe, PayPal, Shopify, SumUp, Adyen, Clover, and others.

Availability varies by country, device, operating system, and account type. Check your provider’s current requirements before attempting to use Tap to Pay.

Which Devices Support Tap To Pay?

Tap to Pay on iPhone works on iPhone XS and newer models. Your payment provider may require a specific iOS version. Apple does not currently support Tap to Pay on iPad.

Android requirements vary. Merchants generally need an NFC-enabled Android phone running a supported operating system, but each payment app maintains its own compatible device list.

How To Accept Tap To Pay

To accept Tap to Pay, perform the following steps:

1. Choose a payment provider that supports Tap to Pay.
2. Download or update the provider’s POS or payment app.
3. Confirm that your phone and operating system are supported.
4. Enable Tap to Pay in the app and accept any required terms.
5. Complete a test transaction before accepting customer payments.

If the option doesn’t appear, you may need to update your phone, enable NFC or location services, or complete additional account verification.

Tap To Pay Pricing

Tap to Pay pricing varies by payment provider.

Many providers charge their standard in-person processing rate for Tap to Pay. Others add a small authorization fee. For example, Stripe currently charges its standard Terminal rate plus $0.10 per Tap to Pay authorization.

Square currently charges its standard rate without additional fees.

Always verify current processing rates with your provider.

The Downsides Of Tap To Pay

Tap to Pay has a few limitations:

• Limited Compatibility: Not every processor, device, or country supports Tap to Pay.
• Contactless Payments Only: Tap to Pay doesn’t accept cards that have to be inserted or swiped.
• Internet Required: Most Tap to Pay services require Wi-Fi or a cellular connection.
• Phone Dependence: A low battery, damaged device, or software issue could affect your ability to pay.

Is Tap To Pay Safe?

Tap to Pay uses encrypted, contactless payment technology and is designed to prevent merchants from seeing or storing customers’ card numbers.

Tap to Pay on iPhone uses the same security and privacy technology that protects Apple Pay and follows applicable PCI contactless-payment standards.

While no payment method eliminates fraud completely, Tap to Pay is generally safer than manually entering card information and carries the protections associated with card-present transactions.

The Bottom Line On Tap To Pay

Tap to Pay is a convenient way for businesses to accept contactless payments without purchasing additional hardware. It’s an excellent tool for mobile sellers, service businesses, events, and merchants that need to start accepting in-person payments quickly.

However, it only supports contactless payments and depends on a compatible phone, app, and internet connection. Businesses should consider keeping a separate card reader or terminal available for customers who need to insert or swipe their cards.