Tap-on-Phone POS payments are available and have been for a while. However, it is quite a costly process, which is not great for small businesses and start-ups.
Ukheshe Technologies announced in July this year, the launch of the first tap-on-phone payment solution needing no certification. This lowers the cost of processing payments dramatically and is already making a difference in how small businesses bank.
Ukheshe’s new system allows any NFC (near-field communication) enabled android mobile phone to become a point-of-sale terminal. This enables you to pay using a contactless card or mobile wallet. Easy payments with no need for any certifications or app authorizations and no need to include any third parties.
This payment system will enable small and medium enterprises, who would not have been able to afford it previously, to take advantage of digital payments.
Paul Selibas, President of Software & Project Engineering for Ukheshe Technologies predicts massive savings and benefits to SMEs, “The cost of a terminal is a hurdle to these businesses, not to mention the additional distribution and maintenance concerns. This new technology combats the high costs of app certifications in developing and implementing tap-on-phone solutions.”
Interestingly, I.T. services and consultancy company Accenture released a report showing that micro-merchants represent around 40% of GDP in emerging markets. A staggering 90% of them still do not accept digital payments.
It seems that consumers today prefer to shop where contactless payments are available.
Previously, this would have left a huge percentage of entrepreneurs unable to take part in this area of economic growth.
Importantly, with this new tap-on-phone technology more micro-enterprises and SMEs have access to a convenient, simple and low-cost payment solution, a crucial development, as this is reported to be the first choice of payment method in the future.
Furthermore, in the same way that a merchant can receive payment through their mobile device, this system will work for a customer making payment in an online shop as well.
“Ukheshe is driving down the barriers to entry in payment acceptance for businesses through simpler, more affordable functionality and low-friction sign-up. We are setting the trend; disrupting the traditional POS system. I think there will be many players rushing out to follow suit because this is a game-changer,” adds Selibas.