For its merchant clients in the US, J.P. Morgan Payments has introduced Tap to Pay on the iPhone. Using their iPhones instead of a special payment card reader or other hardware, businesses may now take contactless payments.
Because contactless payments are being rapidly adopted and more than two-thirds of all credit and debit cards issued in the U.S. are contactless-enabled, merchants will be able to take payments from the majority of customers with only a quick tap on their iPhones.
The outcome is a unique payment experience that allows both businesses and their consumers to interact and pay anywhere there is Wi-Fi or cellular connectivity, making the checkout process quick and easy. With the help of this technology, businesses may accept payments both in-store and on the go.
Takis Georgakopoulos, Global Head of Payments J.P. Morgan, said, “This announcement marks a critical moment in time for the evolution of our business. Enhancing the ability for consumers to pay with their preferred payment method is part of our broader, customer-centric approach to simplify omnichannel payment acceptance for our merchant clients. As consumer payment needs continue to rapidly evolve, this is a significant demonstration of our ability to innovate at scale to support our merchant clients through this ongoing transformation.”
As the first J.P. Morgan Payments customer to make Tap to Pay available on the iPhone, Sephora will gain from the widespread adoption of the modernized, effective method.
Stefan Jensen, Vice President, Treasurer at Sephora, said, “We are excited to partner with J.P. Morgan Payments to deliver Tap to Pay on iPhone and continue to bring innovative payment solutions to the Sephora shopping journey. Sephora operates with a customer-first mindset, and our goal is to provide an elevated shopping experience in all the ways that our beauty community chooses to shop with us.”
Tap to Pay is currently being rolled out to all of Sephora’s U.S. freestanding stores.
Tap to Pay, explained
To exchange payment information, Tap to Pay employs a technology called near-field communication (NFC). To put it simply, NFC enables neighbouring devices to connect with one another via radio waves, allowing users to perform transactions without actually touching the payment terminal.
Tap-to-pay is supported as long as a card permits contactless transactions and the merchant’s payment terminal is NFC-capable. There is no need to swipe or enter a card to pay. Because payment information is encrypted when shared via NFC, tapping to pay is secure.
The Tap-to-Pay Benefits
As the contactless payment market is now expected to reach $19.3 billion by 2026, experts indicate tap to pay is the standard.
In fact, a Visa survey found that 41% of consumers would avoid a retailer that did not accept contactless payments, and an Amex study found that the top two benefits of contactless payments are speed and convenience (73% and 54%, respectively).
Let’s examine the advantages of tap to pay for both merchants and customers:
For Merchants: Tap to Pay accelerates the checkout process, reducing waiting times and streamlining customer flow. This can enhance the overall shopping experience, especially during peak hours, ultimately leading to higher customer satisfaction and potentially more sales.
For Customers: Tap to Pay offers a swift and efficient payment method. The need to insert cards or enter PINs is eliminated, saving valuable time during transactions. This convenience is particularly appealing when making quick, low-value purchases.
For Merchants: Tap to Pay incorporates encryption and tokenization technologies, making customer payment data less susceptible to breaches. By minimizing the handling of physical cards, merchants reduce the risks associated with card skimming and other fraudulent activities.
For Customers: Tap to Pay enhances security by not requiring physical card sharing or exposing sensitive information during transactions. The encryption of payment data adds a layer of protection against data theft and unauthorized access.
For Merchants: Tap to Pay improves overall customer satisfaction by simplifying the payment process. It encourages repeat business and may lead to positive word-of-mouth recommendations.
For Customers: Tap to Pay eliminates the need to carry and locate physical cards. It offers a seamless and hassle-free experience, contributing to a more enjoyable shopping experience and encouraging customers to return.
- Attracting Youth:
For Merchants: Implementing Tap to Pay can attract younger customers who are accustomed to mobile and contactless technologies. Catering to this demographic can broaden a merchant’s customer base and establish brand loyalty.
For Customers: Tap to Pay resonates with the younger generation that is accustomed to technology-driven solutions. It aligns with their preferences for quick and effortless transactions, making the merchant more appealing to this demographic.