The Rapid Rise Of Tap And Go
All First Data Point of Sale terminals and PIN Pads accept contactless payments, including MasterCard PayPass®, Visa payWave® and Interac FlashTM and Apple Pay with a tap of their card.
In fact, you’re right to be considering Tap and Go for your business because punching in a security pin is becoming old fashioned for Canadian credit card users, particularly when making small purchases. Debit and credit cards equipped with technology that allows a user to pay with only a wave or tap of their card are spreading rapidly.
Canada’s two biggest card providers, Visa and MasterCard, have offered cards with contactless technology for the past several years, but it now appears usage has hit a “tipping point,” While contactless cards have been issued over the past 10 years but really have taken off at an accelerated pace in the last two or so. Statistics show that the dollar volume of “contactless” payments made across processing terminals in Canada jumped 162 per cent in the three months between July and the end of September 2015, compared to the same three-month stretch the previous year.*
A 2012 study commissioned by MasterCard found that cardholders that received tap-enabled cards spent almost 30 per cent more than previously. This statistic is cautionary for consumers but great news for merchants – because it means more consumer spending at your establishment.
Visa says contactless transactions represented 12.1 per cent of all store purchases made by cardholders in June 2014. That number was approaching nearly a quarter of purchases on Visa cards in June 2015.
At MasterCard, which has been quicker to roll out tap-enabled cards, 27 per cent of in-store purchases were contactless as of September 2014.
Purchases at drug stores, gas stations and convenience stores were the chief drivers of the spike.
How Tap & Go Works
At the heart of this advanced payment technology is a tiny microchip and radio antenna embedded in your contactless debit card, credit card, key fob, or mobile phone. Your payment details are wirelessly transmitted to a high-speed contactless reader, which then uses the card processing network to verify your transaction – nearly instantly – with your financial institution. When you see the green light and hear the beep, your payment has been accepted. Tap And Go payments are designed for making small purchases more convenient, and are capped at $100.
Want To Get Tap And Go For Your Business?
Tap and Go is net technology and can be confusing at first.
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