The Tap2Phone technology was first introduced by the payment technology company, SoftPos, in 2018. Since then, it has become an increasingly popular payment solution, particularly for small and micro-merchants who cannot afford traditional payment hardware or who need a portable payment option for their business.
In this article, we will explore the key features and benefits of Tap2Phone, how it works, its security features, and its impact on the payments industry.
### Key Features and Benefits of Tap2Phone
One of the primary benefits of Tap2Phone is that it eliminates the need for merchants to invest in expensive payment hardware, such as terminals or card readers. Merchants can simply download the Tap2Phone app onto their smartphone or tablet and start accepting payments immediately. This makes it an affordable payment solution for small businesses, street vendors, and mobile merchants.
Another benefit of Tap2Phone is its ease of use. Merchants can accept payments by tapping the customer's contactless payment card or mobile device against their smartphone or tablet. The payment information is transmitted wirelessly via NFC technology and processed securely through the merchant's payment gateway.
Tap2Phone is also highly versatile, as it can be easily integrated with existing payment systems, making it a seamless addition to a merchant's payment ecosystem. Merchants can use Tap2Phone in conjunction with other payment methods, such as mobile wallets or QR code payments, to offer their customers a variety of payment options.
Moreover, Tap2Phone is a convenient and flexible payment solution that allows merchants to accept payments wherever they are, as long as they have an internet connection. This makes it ideal for merchants who are on the move, such as food trucks or market vendors, or who need to accept payments at events or pop-up stores.
### How Tap2Phone Works
Tap2Phone works by turning a merchant's smartphone or tablet into a payment terminal using NFC technology. NFC technology enables wireless communication between two devices that are in close proximity to each other. This allows the payment information to be transmitted securely from the customer's device to the merchant's device.
To use Tap2Phone, merchants need to download the Tap2Phone app onto their smartphone or tablet and set up an account with their payment processor. Once set up, merchants can accept payments by tapping the customer's contactless payment card or mobile device against their smartphone or tablet.
The payment information is then transmitted wirelessly via NFC technology and processed securely through the merchant's payment gateway. The merchant receives a notification that the payment has been approved, and the transaction is completed.
### Security Features of Tap2Phone
Security is a critical consideration for any payment technology, and Tap2Phone is no exception. Tap2Phone uses advanced encryption and tokenization technology to ensure that payment information is transmitted and stored securely.
Encryption is the process of encoding information in such a way that only authorized parties can access it. In the case of Tap2Phone, the payment information is encrypted during transmission to ensure that it cannot be intercepted by unauthorized parties.
Tokenization is the process of substituting sensitive data with non-sensitive data, called a token. In the case of Tap2Phone, the payment information is tokenized before it is stored to ensure that sensitive data, such as the customer's payment card number, is never stored on the merchant's device.
### Impact of Tap2Phone on the Payments Industry
Tap2Phone has the potential to disrupt the payments industry by making it easier and more affordable for small and micro-merchants to accept payments. By eliminating the