Tap and Pay, also known as NFC (Near Field Communication), is a technology that allows you to make payments by simply tapping your phone against a payment terminal. NFC has been available on Android phones for many years, but it's only recently that Apple has added support for it in their iPhones.
How Does Tap and Pay Work?
In order to use NFC Tap and Pay, you simply need a phone with the technology, an NFC enabled bank card, and a payment terminal. There are two ways in which your phone can communicate with the terminal: via a secure element or by using cloud-based payments. In both cases, all you have to do is tap your phone against the terminal and authorize the payment with your fingerprint or PIN.
What are the Advantages of Tap and Pay?
There are a number of advantages to using NFC Tap and Pay:
- It's fast and easy to use - all you have to do is tap your phone against the payment terminal.
- It's available on both Android and iOS phones.
- It allows you to store multiple bank cards on your phone, so that there's no need to carry them all around with you.
- It doesn't require a PIN or fingerprint to work (in most cases), which means that it can be used for small transactions.
- You don't need to have a data connection for it to work.
- You can use it with multiple banks and financial institutions.
- It's more secure than traditional cards, since your card details are not transmitted over a wireless network or a payment terminal that is connected to the Internet.
What do you need?
An Android smartphone that has NFC support (most mid-range and high-end phones do).
An NFC/Tap & Pay enabled bank card (cards from most banks support this, as long as they are Maestro or VISA cards)
A payment terminal that supports Tap and Pay. Most payment terminals in stores and supermarkets can be configured to work with NFC phones, but you can also use it in taxis, gas stations and other small businesses.
Who provides Tap and Pay?
You can use NFC Tap & Pay with any of your bank cards that are Maestro or VISA cards. If you have an Android phone, you're all set to go since most phones with NFC support come preloaded with the technology. You can also use an NFC-enabled payment terminal that works with your cards and Android phones.
If you have an iPhone, then things get a little more complicated. As of right now, Apple only supports their own mobile payments service (Apple Pay) and not third party solutions like Google Wallet or Softcard (previously called Isis). However, you can still use NFC Tap and Pay if your bank card is compatible with Android.
What Banks Support NFC/Tap & Pay?
Most banks support NFC payment technology, but not all of them do. If you're not sure whether your bank supports it, then contact them and ask them directly or check their website for more information (they will usually have a section about NFC payments). You can also use the following banks with Tap and Pay:
- Commonwealth Bank
- ANZ
- NAB
- Westpac
- St.George
- Bankwest
- Suncorp
What are the Disadvantages of NFC/Tap & Pay?
There are a few disadvantages to using NFC Tap and Pay:
- Not all phones have NFC support, so you may not be able to use it if you don't have the right phone.
- Some payment terminals may not be configured to work with NFC phones, so you may have some trouble using it in certain stores.
- You need to have a data connection for it to work.
- It can be difficult to use if your phone has a cracked screen or is damaged in some other way.
- There is still a small chance of fraudulent activity, so you should take the same precautions as you would with traditional cards.
- You can't use it to withdraw money from an ATM.
What are the Alternatives to Tap and Pay?
If you don't have an NFC-enabled phone or if your bank doesn't support Tap and Pay, then there are a few other alternatives that you can use:
- Contactless cards: These are traditional debit or credit cards that have a contactless chip on them. You can use these cards by tapping them against a payment terminal, and they work with most smartphones.
- Mobile payments services: Apple Pay, Android Pay and Samsung Pay are all mobile payments services that allow you to make payments with your smartphone. They work with a variety of bank cards and payment terminals, and they are more widely accepted than Tap and Pay.
- PayPal: PayPal is a popular online payment service that allows you to send and receive payments with your smartphone. It's not as widely accepted as the other options, but it's a good option if you don't have access to NFC or contactless cards.
- Cash: This is the most traditional payment method, but it is also highly insecure. Many stores offer cashless payments with contactless cards or mobile app payments instead of using physical cash.
What are the Benefits of Tap and Pay?
Tap and Pay has a number of advantages over other payment options:
- It's more secure than traditional cards since your actual bank card number isn't visible to anyone and it can't be used by criminals.
- It's much easier than using a regular card to make payments. All you need to do is tap your phone against the payment terminal and wait for the transaction to go through (you don't even need to unlock your phone).
- You can use it to make payments even if you don't have a data connection.
- It's faster than traditional card transactions, and you don't have to enter your PIN or sign anything.
- You can use it to make online purchases without having to enter your card details.
- It's more convenient than using cash, and you don't have to worry about losing your money.
You can use it to withdraw money from ATMs if you have an NFC-enabled bank card.
How Does Tap and Pay Work?
Tap and Pay works by using Near Field Communication (NFC) technology to create a wireless connection between your phone and the payment terminal. This allows you to make a transaction by tapping your phone against the terminal. If you have a bank card that supports NFC payments, then you can use its details with Tap and Pay without having to enter your PIN or sign anything. The payment terminal will automatically detect your bank card and process the transaction.
