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The momentum behind tap to pay technology on smart phones shows no signs of slowing down. MagicCube Inc., which has traditionally focused on providing contactless payment technology to small merchants through off-the-shelf mobile devices, has expanded its reach to small and mid-sized merchants through a partnership with ACI Worldwide Inc. to enable merchants to accept contactless payments without a dongle on smartphones and tablets with or without a PIN.
The deal also allows merchants to increase their payment acceptance capabilities, especially away from the checkout counter, without having to add more point-of-sale terminals. The deal comes less than a year after MagicCube made its i-Accept platform for enterprise and big-box merchants.
This platform allows for secure PIN capture on the screen of a commercial off-the-shelf mobile device without a PIN entry device key. ACI merchants will be able to accept contactless payments from consumers using cards or digital wallets, such as Apple Pay, Google Pay, and Samsung Pay.
“Merchants can expand their sales force’s ability to accept face to face payments without the cost or lead time associated with deploying legacy terminals,” MagicCube chief executive Sam Shawki tells Digital Transactions News by email. “Imagine adding 20 new acceptance capabilities just by having your sales associates or delivery drivers just downloading an app. Also, you can choose to reduce this capacity during low season by clicking a button.”
In related news, Fiserv Inc. introduced Tap to Pay on iPhone for small and mid-sized merchants using its Clover point-of-sale and business management platform. Clover merchants can enable Tap to Pay on iPhone by downloading the Clover Go iOS app in the Apple app store. After the app has been downloaded, merchants can present a payment screen on an iPhone and securely accept any form of contactless payment, including credit and debit cards, Apple Pay, and other digital wallets.
“Small businesses want to streamline their operations, sell more, and connect with their customers no matter where they are,” Dan Bjerke, global head of Clover says in a statement. “Clover powers omnichannel technology and capabilities that enable us to meet their needs. By enabling Tap to Pay on iPhone, businesses can increase flexibility and expand customer engagement with the efficiency of using a device they already own.”
The increasing adoption of tap to pay on phone technology by merchants is being driven in part by the convenience, security, flexibility, and efficiency the technology provides when it comes to payment acceptance. “Tap to pay success is driven by the same factors that drove Fax machines to extinction when email started picking up,” Shawki says. “The story of tap to pay is similar to the story of Netflix vs Blockbuster.”
