It’s become an ongoing challenge for SMBs and micro-merchants to remain competitive as a result of the pandemic. At a time when contactless payments can really shine, many small merchants lack the financial resources needed to adopt feature-rich payment terminals that accept contactless payments. Add in supply chain issues that make getting terminals challenging, and many merchants have been left without recourse — until they learn about the benefits of tap to mobile (TTM). This payments technology turns everyday smartphones into functional payment acceptance devices.
As we discussed in our previous blog on the topic, to use tap to mobile, merchants need only to download an app on a commercial off-the-shelf (COTS) smartphone and then connect to an approved payment processor. Once connected to the payment processor, the phone automatically receives its provisioning credentials. This enables SMBs and micro-merchants to accept contactless payments from contactless-enabled cards or devices like phones, wearables and tablets within minutes.
Tap to mobile payments has strong support.
A recent NMI survey of 300 small business owners and 1,000 consumers in the U.S. and U.K. shows that there’s a market for tap to mobile payments. However, there’s also some work to be done by software developers and ISOs.
Although 93% of SMB respondents agreed that customers are looking for more contactless payment methods when making a purchase at their business, nearly a quarter (23%) said they don’t offer contactless payments.
When asked why SMBs are unable to accept contactless payments, the majority of owners (55%) said they simply hadn’t upgraded their systems to accept contactless payments. And even though customers are seeking more contactless payment methods when they shop, 37% of SMB owners that don’t accept contactless payments said they don’t see the need to offer them.
However, SMB owners should consider how a lack of contactless payments could impact their businesses: Eighty-three percent of consumer respondents agreed they have preferred using contactless payments whenever possible since the COVID-19 pandemic started. Contactless payments (56%) were also consumers’ second most regularly used payment for in-person purchases, closely behind credit/debit cards with chip (63%).
In addition, well over half of consumers (59%) said they’re less likely to return to a business that doesn’t have their preferred payment option, and nearly three-quarters of respondents (72%) said the availability of their preferred payment methods is important when they leave an online review for a business.
NMI’s data shows that contactless payments are fast becoming a priority for shoppers, meaning the expectation for businesses of all sizes to offer them will only increase. On the upside, barriers to offering tap to mobile payments are extremely low — SMBs and micro-merchants can quickly adopt the solution to help meet this consumer demand.
Tap to mobile is only one call away
It’s clear this presents a significant opportunity to solution providers in 2022. Tap to mobile has the potential to democratize payments. The costs associated with new payment hardware no longer need to be barriers to entry for merchants looking to improve their businesses.
NMI has been on the cutting-edge of tap to mobile solutions through its partnership with Mastercard, and the company is ready to help power the next generation of entrepreneurs. Whether you are a software developer or payment solution provider, NMI is prepared to serve as a trusted partner and help deliver tap to mobile to your customers. Contact us today to learn more.