Over half (55 percent) of consumers in Asia Pacific would use ‘tap to phone’ payments at the checkout counter – Taiwan consumers are among the region’s keenest at 62 percent
Tap to phone solutions enable small businesses to accept Visa payments on their smartphone, eliminating the need for expensive point-of-sale infrastructure
New research from Visa Asia Pacific tap to phone Study1 found that the majority (55 percent) of Asia Pacific consumers would likely use tap to phone payments, despite solutions not yet being widely available in the region. Consumer interest in Taiwan is second only to Malaysia (64 percent) in the Asia Pacific region, with 62 percent of consumers willing to use ‘tap to phone’ payments at checkout counter, appearing in the top ranking among the region. 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.
Michelle Jao, General Manager of Visa Taiwan said: “Contactless payment is now the norm in Taiwan, comprising 7 in 10 of all face-to-face Visa transactions. 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.”
“We have seen a proliferation of mobile payment options in Taiwan. Therefore there is a need to bring the same fast, secure and consistent user experiences to more sellers. For micro and small businesses in particular, tap to phone is a cost-effective way to accept Visa and enjoy the benefits of digital commerce,” added Ms. Jao.
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. Saving time was rated as the top reason that encourage them to try Tap 2 Phone, by 63 percent of Taiwan consumers surveyed. This was followed by eliminating the need to carry cash (60 percent) and ease of use (52 percent).
Thirty-one percent of Taiwan consumers rated security as a factor that would encourage their adoption of tap to phone payments. However, the survey also revealed a need for the industry to educate consumers about security features. Losing personal or financial information (61 percent and 54 percent) were named as the top concern around using tap to phone. Tap to phone solution brings 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 and public transport are popular scenarios for tap to phone
Visa’s research also looked at the scenarios where consumers would be most likely to pay via tap to phone. Convenience stores were cited by 71 percent of survey participants in Taiwan, reflecting the desire for quick, easy transactions. Over 63 percent said they would want to be able to pay at public transport such as buses and taxies. Food courts, street stalls and kiosks were the third most popular scenario at 53 percent.
“Typical of Taiwan, customers at convenience stores, restaurants and small retail stores 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 business, Visa is collaborating with our partners to bring more tap to phone solutions Taiwan and across the region.” said Ms. Jao.
Some additional payment scenario such as “paying at small local businesses” (38 percent), “charitable donations” (21 percent) and “door-to-door salesman” (12 percent) are mentioned.
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.
1 Visa Asia Pacific tap to phone Study: Conducted by YouGov research between 16 to 20 July 2020
 VisaNet: Q2 FY20