September 9, 2019

Accept cashless payments with just your phone

NAB trials new tap-on-phone payments to support small business.

More people are choosing to tap and go and, soon, even the smallest businesses will be able to take advantage of it. With easy-to-use new technology being trialled by NAB, soon you’ll be able to accept cashless payments using nothing but your phone.

Australians love electronic payments – over the decade to 2017 to 18, the number more than doubled to around 480 electronic transactions per person per year. As the tap-and-go option has also grown in popularity, particularly for smaller purchases, people are choosing to carry and use less cash.

“This can impact sales and growth for small businesses and sole traders with limited options other than cash,” says Andy Kerr, NAB Executive General Manager, Transaction Banking. “We’ve heard loud and clear from our customers that they want access to payment technology without the additional hardware associated with a traditional POS terminal.”

The good news for NAB customers is that the solution is on its way. With the latest tap-on-phone technology currently being trialled, even the smallest business will be able to accept fast and secure contactless payments of up to $100 using nothing more than a mobile phone.

“This innovation will address the gap where businesses aren’t big enough to need a POS terminal but are established enough to accept contactless card payments,” Kerr says. “It will also benefit existing merchant customers by enabling them to set up an additional card acceptance point during high trading times such as Christmas without the need to obtain a physical device.”

Making business more convenient

The technology is being trialled in partnership with Visa and Quest Payment Systems.

“We’re thrilled to be working with NAB and Quest to enable small businesses and other cash-reliant organisations to offer customers more choice in how they pay,” says Dan Parsons, Visa’s Head of Merchant Sales and Solutions. “Data shows 94 per cent of Visa’s face-to-face transactions are contactless. As more Australians prefer tapping to pay, providing cost-effective, convenient, flexible and secure ways to accept digital payments ensures all businesses can continue to grow and offer better customer experiences.”

The technology will support small businesses across Australia in their drive to greater flexibility. Intended users will range from market stall vendors, boutique retailers and sole traders to start-ups, those who only accept payments infrequently and larger retailers experiencing peak periods.

“At Visa, we’re particularly excited by the potential of tap-on-phone technology in helping charitable and not-for-profit organisations increase face-to-face donations at a time when we’re seeing people carry less cash, and instead reach for cards and phones to make payments,” Parsons says.

Easy-to-access solution

The tap-on-phone solution had been developed in Australia by Quest’s in-house software development team.

“It provides a total eco-system to ensure security of the contactless transactions in the same way a traditional terminal does,” says Quest CEO Jan Mason.

As a vendor, accessing tap-on-phone technology will be as easy as downloading an app to your phone and logging on.

“NAB is excited to trial technology which will support small businesses and sole traders to provide cashless solutions for customers,” Kerr says. “Now the pilot is underway, we look forward to rolling this service out to NAB customers in the coming months.”