SINGAPORE, Sept. 3, 2020 /PRNewswire/ -- As consumers and businesses across Asia Pacific increasingly turn to digital payments during the COVID-19 pandemic, Visa is calling on the payments industry to accelerate the availability of Tap to Phone solutions in order to bring more micro and small businesses into the digital economy. Tap to Phone enables sellers to accept Visa contactless payments directly on their own Android NFC-enabled smartphones, without the need for a separate payment acceptance terminal.
New research from Visa found that the majority (55%) of Asia Pacific consumers would likely use Tap to Phone payments, despite solutions not yet being widely available in the region. Consumer interest is strongest in Malaysia (64%), followed by Taiwan (62%), Hong Kong (62%), and India (55%). The research suggests that as Tap to Phone solutions are introduced in Asia Pacific, consumers will embrace this new form of the contactless payments they are already accustomed to using.
"Asia Pacific has led the world in adopting contactless payments, which now account for around 44% of face-to-face Visa transactions in the region, climbing to over 70% in a number of key markets,[1]" said Chris Clark, regional president, Asia Pacific, Visa. "The consumer experience with Tap to Phone payments is very similar, including the security features. Instead of tapping your card, phone or smart device on a point-of-sale terminal, you tap on the seller's smartphone to pay. For the seller, this means they can accept digital payments without having to get a separate terminal. For micro and small businesses, Tap to Phone is a cost-effective way to accept Visa and enjoy the benefits of digital commerce."
Ease, convenience, and not needing to use cash appeal to consumers
In addition to simplifying point-of-sale infrastructure for businesses, tap to phone payments bring benefits to consumers. Of consumers surveyed, ease of use was rated as the top reason that would encourage them to try tap to phone (52%. This was followed by saving time (51%) and eliminating the need to carry cash (50%).
Forty-three per cent of consumers rated security as a factor that would encourage their adoption of tap to phone payments. However, Visa believes there is a need for the industry to work together to educate consumers about security features. Losing personal or financial information were named as the top concerns around using tap to phone. Tap to Phone solutions bring multiple layers of security on both the buyer and seller side, to ensure that Visa's high standards for secure payments are met. Each solution undergoes an intensive certification process including a security assessment by an accredited expert security lab. These solutions are also supported by an industry standard that has been developed and published by the PCI Security Standards Council.
Convenience stores, restaurants and food courts popular settings for Tap to Phone
Visa's research also looked at where consumers would be most likely to pay via tap to phone. Convenience stores were cited by 59% of survey participants, reflecting the desire for quick, easy transactions. Over half (56%) said they would want to be able to pay at a restaurant while seated at the table. Food courts, street stalls and kiosks were the third most popular venue at 52%.
"Customers at convenience stores, restaurants and quick-service outlets like food courts don't want to be slowed down by a cumbersome payment transaction. And for these businesses, speed and convenience in serving their customers is a priority. Tap to Phone is a new option for these businesses to consider, especially if they're not yet accepting digital payments. In light of the consumer demand and opportunity for businesses, Visa is collaborating with our partners to bring more Tap to Phone solutions to Asia Pacific," said Clark.
Visa is working with and has certified nine technology providers and is partnering with many acquirers and fintechs to bring solutions to market. Visa and its partners have launched Tap to Phone solutions in Malaysia and India, with more Asia Pacific markets to follow in the coming months.
Methodology: Visa Asia Pacific Tap to Phone Study
The Visa Asia Pacific Tap to Phone study was conducted by YouGov research between 16 to 20 July 2020, among 6,832 adults ages 18+ in Australia, Hong Kong, India, Malaysia, New Zealand, Singapore and Taiwan.
About Visa Inc.
Visa Inc. is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.
[1] VisaNet data, June 2020
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