First, there was cash. Then credit and debit cards revolutionized how we pay for goods and services.
Today, contactless payment methods have once again changed the global marketplace.
In a few short years, it’s become second nature for consumers to tap their cards, smartphones, and wearable devices at checkout terminals to make payments.
Let’s take a look at how tap to pay works—and how you can support contactless payments in your store.
What is tap to pay?
“Tap to pay” is a contactless way for customers to make purchases. Instead of swiping or inserting a card into a payment terminal, buyers tap their cards, smartphones, or compatible wearable devices.
The technology behind tap to pay is called near-field communication, or NFC. It’s a short-range radio frequency that lets a payment terminal and a contactless card or device communicate with each other securely and wirelessly.
More than two-thirds of credit and debit cards in the US are contactless-enabled, and over half of Americans now regularly tap to pay with their cards and mobile wallets. So, it’s no surprise that the market for contactless payment terminals is expected to double by 2026, surpassing $43 billion.
How does tap to pay work?
Customers can tap to pay thanks to technology called near-field communication, which is a type of radio-frequency identification, or RFID. RFID readers have been used for decades in settings like supermarkets and airports to identify your groceries and baggage.
NFC operates on a specific RFID frequency, 13.56 MHz, which avoids interference from other wireless devices and ensures communication can only happen over a small distance. This provides a layer of payment security and reduces the chance of accidental taps.
When an NFC-enabled card, smartphone, or wearable device is held within about two inches of a NFC payment terminal, it transmits a unique encrypted code representing transaction details such as your card number and expiration date.
The terminal sends the encrypted information to the merchant’s bank and your bank, which verifies the details and sends back an approval or denial.
Once the terminal receives the approval, it completes the transaction and sends a signal to your card or device to confirm the payment.
All NFC-enabled payment terminals feature a universal contactless payment symbol of four curved lines representing a radio signal:
Today, many terminals can accept contactless payments, including point-of-sale systems, vending machines, parking meters—and even smartphones.
The communication between NFC devices and payment terminals can be active or passive:
- Active NFC payments are a two-way information exchange between powered devices, such as a point-of-sale terminal and a smartphone’s mobile wallet.
- Passive NFC payments require only one powered device. The other device, such as a contactless credit card, doesn't need its own power source to receive information.
💡 Shopify POS hardware lets customers tap to pay at the counter, on the sales floor, and on the go.
Tap to pay methods
As technology evolves, more contactless payment methods are emerging. Customers can now tap to pay using:
- Debit and credit cards
- Wearable devices
- Smartphones
1. Debit and credit cards
You can tap or hover an NFC-enabled card over any payment terminal with the four-line radio wave symbol.
The terminal will beep, flash a green light, or show a message to confirm when a payment is complete.
2. Wearable devices
NFC-enabled wearables come in various shapes and forms—bracelets, rings, fobs, and smartwatches. Together, they form a market that’s expected to be worth $80.39 billion by 2028.
After enabling tap to pay and setting up an account on the device’s mobile wallet feature, wearable users can bring their watch or ring within two inches of the contactless symbol on the terminal to pay.
3. Smartphones
There are several ways to make a mobile payment with a smartphone, including tap to pay.
After loading credit or debit card information into a phone’s mobile wallet, customers can select a bank account and hold their phone over an NFC-enabled terminal to pay.
With consumers rarely leaving home without their phones, contactless mobile payments are becoming the preferred payment method in certain markets. For example, one in five UK shoppers now opt for mobile payment when possible.
All major smartphone manufacturers offer a mobile wallet for contactless payment, including Apple Pay, Google Pay, and Samsung Pay.
How to use tap to pay on iPhone and Android
Here’s how to tap to pay using your smartphone:
How to use tap to pay on iPhone
To tap to pay with your iPhone (or Apple Watch), you first need to set up Apple Pay—Apple’s mobile wallet.
- Open the Wallet app on your iPhone.
- Tap the “+” sign to add a new card.
- Follow the prompts to add your card details.
- Follow your bank's verification instructions.
Now you're ready to make contactless payments with your iPhone. When checking out, unlock your iPhone and hold it near the payment terminal.
Depending on your device and Apple Pay settings, your iPhone may require Face ID, Touch ID, or your passcode for authentication before processing your payment.
How to use tap to pay on Android
For Android users, Google Pay is the equivalent to Apple Pay. Here's how to set it up:
- Open the Google Wallet app.
- Tap on your profile picture or Account and select Tap to pay setup.
- To add a card, tap Add to Wallet, then Payment card, then New credit or debit card and follow the instructions to enter your card information.
- Ensure Near-field communication (NFC) is turned on in Settings.
To tap to pay with Android, wake up and unlock your phone, then hold the back of the device to the payment terminal. When you’re done paying, a blue check mark should appear on the screen.
How to accept tap to pay at your retail store
Here’s how you can support tap to pay at your retail location:
1. Contactless card readers
Tap and chip card readers add contactless payment features to point-of-sale terminals—the in-store devices used to process customer purchases and orders.
2. iPhone tap to pay
Apple Tap to Pay for iPhone is a native Apple feature that lets retailers accept contactless card and mobile payments using their iPhone. When enabled, your phone will display the amount being charged, your merchant name, an icon representing the type of purchase (e.g., groceries), and directions for the customer for where to tap their card or device.
💡 Tap to Pay on iPhone for Shopify is the easiest way to support contactless payments. Accept contactless debit, credit, and mobile payments with just your iPhone—no extra hardware needed.
Benefits of tap to pay
- Speed
- Security
- Popularity
Here’s why retailers and shoppers benefit from tap to pay.
1. Speed
Tap to pay reduces checkout lines by optimizing the payment process. Data suggests that contactless payments are up to 10 times faster than swiping, inserting a card, or using cash.
2. Security
Every time a customer taps to pay, their information is converted into a unique encrypted code. Even if a hacker were to access that code, the information is only valid for a single transaction.
Active NFC contactless devices may contain additional security layers. Apple Pay for iPhone, for example, requires customers to confirm their identity before making a purchase.
3. Popularity
Retailers are now likely to encounter customers who expect to be able to tap to pay. Studies show that 67% of millennials use a digital wallet, with fewer consumers carrying cash or credit cards.
According to a Visa study, 41% of consumers would not shop at a store that didn’t offer contactless payments, while a study from Amex confirms convenience and speed are the top reasons that consumers prefer contactless payment options.
Let your customers tap to pay
Most customers prefer the speed, security, and convenience of tap to pay—so it makes sense to support contactless payments in your store.