Business owners will be able to process contactless payments using nothing more than an NFC-enabled Android phone following a collaboration between Phos and Mastercard.
The fintech startup has developed what it says is the first-ever software-only Point of Sale (POS) system (SoftPoS), and is now working with Mastercard to support its own Tap on Phone system. Tap on Phone transforms handsets into payment acceptance devices which, with the aid of SoftPos removes the need for any POS hardware.
Announced today, SMEs can simply download Tap on Phone to any smartphone that has near field communication and effectively turn their humble handset into a POS. The system allows business owners to accept contactless payments from debit and credit cards along with mobile wallets and wearables, all while bypassing the need for an additional POS terminal.
Mastercard has also raised its Card Holder Verification Limit (CVM), which means businesses can have more flexibility when processing contactless payments. The CVM is the amount that merchants are able to accept during a transaction. Combined with the ability to bypass the need for conventional point of sale hardware SMEs will be able to boost their contactless processing power and offer customers added convenience.
Jason Lane, Executive Vice President, Market Development Europe at Mastercard, said: “One of the many ways in which we try to help small businesses at Mastercard is by enabling them to accept payments so that they are not limited to cash only transactions. This can help them improve their cashflows and benefit their bottom lines.
Our partnership with phos not only fulfils this goal, but it also enables small businesses to provide their customers with contactless payment options via Tap on Phone thus meeting the strong consumer demand for contactless payments.”
Brad Hyett, CEO of phos, added: “By extending our relationship with Mastercard, we’re combining its reach with our software to help merchants of all sizes transform their business rapidly. We all need to be able to adapt to changing environments, and with Tap on Phone, retailers can deploy new services that improve the customer experience and increase retention.”