Visa rolls out Tap-to-Phone contactless technology

The new service taps into a growing demand for digital payments

| More on:
mobile phone displaying visa credit card, tick symbol and thumb print

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Visa Inc (NYSE: V) this week announced that it is officially rolling out its Tap to Phone contactless payment app in 15 markets, with plans to expand to the U.S. and other markets.

Tap to Phone provides point-of-sale terminals without any additional hardware. Sellers download the Tap to Phone app on their Android smartphones or tablets, and they can start accepting contactless payments from buyers who just tap their Visa cards to the merchants' phone. Transactions are protected through EMV chip-based security.

This follows a successful pilot program that was launched earlier this year with Samsung.

Currently, the technology is available in various countries in Europe, the Middle East, Africa, the Asia-Pacific region, and Latin America, as well as Belarus, Malaysia, Peru, Russia, and South Africa. Upcoming launches are planned in Brazil, Italy, the United Arab Emirates, and the United Kingdom. The plan is to roll it out in the U.S. in 2021.

Fewer than 10% of the 180 million micro and small merchants (MSMs) around the world can accept digital payments. And a survey by Visa showed that 63% of MSMs said they would likely implement Tap to Phone for their own businesses, while approximately 50% of consumers said they would use it if offered. Visa expects this service to close that gap.

Mary Kay Bowman, global head of buyer and seller solutions at Visa, said: "With billions of phones around the world at the ready, the opportunity that comes with lighting them up as payment acceptance devices is enormous. Visa Tap to Phone could be one of the most profound ways to reinvent the physical shopping experience."

The use of tap-to-pay technology has spike 40% this year due to the pandemic and social distancing, according to Visa. A recent survey by the company found that 48% of consumers said they would not shop at a store that only had payment methods that require contact.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Visa. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

The US election is done and dusted. Is now the time to buy the ASX NDQ ETF?

US stocks continue to march higher this week.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
International Stock News

Why is everyone talking about the VIX Index today?

Fear or greed: Which investor sentiment will prevail today?

Read more »

A young kid with dark glasses rocks out with a guitar.
International Stock News

Why Nvidia stock rallied to a new all-time high on Wednesday

The changing of the guard bodes well for the artificial intelligence (AI) chip specialist.

Read more »

A handsome smiling man sits in the front seat of an electric vehicle with his hands on the wheel feeling pleased that the Carsales share price is going up and the company will shortly pay its biggest dividend ever
International Stock News

Why Tesla stock just skyrocketed

Why is Donald Trump's election victory powering explosive gains for Tesla stock?

Read more »

Man holding up betting slip and cheering along with two friends in front of TV
International Stock News

Elon Musk's big gamble: Will Tesla stock plunge if Kamala Harris wins the election?

The Tesla CEO has been an outspoken advocate for GOP presidential candidate Donald Trump. Will it backfire?

Read more »

Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.
Economy

Up 20% this year. Does the S&P 500 Index have more in the tank for 2024?

Will US stocks hold up after the election?

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
International Stock News

2 magnificent S&P 500 dividend stocks down 27% to 51% to buy and hold forever

These stocks hold potential to act as growth and income plays.

Read more »

A young female investor with brown curly hair and wearing a yellow top and glasses sits at her desk using her calculator to work out how much her ASX dividend shares will pay this year
International Stock News

One Wall Street analyst thinks this emerging Artificial Intelligence stock could rise 60% in the next year

SoundHound AI is on the doorstep of a big year.

Read more »