Access Bank, in collaboration with Visa, has officially launched the innovative Tap to Phone service in Nigeria, marking a significant advancement in the realm of contactless payments. This new offering empowers merchants to accept payments seamlessly using their NFC-enabled Android smartphones, transforming them into fully functional payment terminals.
According to the official announcement, the Tap to Phone feature allows merchants to process Visa payments effortlessly by simply having customers tap their Visa cards against the merchant’s smartphone. This development is poised to revolutionize the payment experience for both merchants and consumers, eliminating the need for traditional point-of-sale (PoS) hardware.
The introduction of Tap to Phone aligns with a broader trend of increasing contactless payment solutions across Africa. For instance, in September 2024, Interswitch partnered with Tuma to unveil a contactless payment system in Kenya, further emphasizing the region’s shift towards digital transactions. Additionally, Nigerian fintech companies Moniepoint and PalmPay have collaborated with AfriGO to roll out five million contactless payment cards, highlighting the growing demand for such services in the country.
Access Bank’s Tap to Phone initiative stands out as it not only facilitates card payments but also allows merchants to receive payments directly through their smartphones, thereby streamlining the payment process and reducing reliance on additional hardware. To utilize this service, merchants simply need to download a dedicated app on their smartphones, making it an accessible solution for businesses of all sizes.
In a similar vein, Visa’s partnership with iKhokha in South Africa has enabled business owners to accept card payments via their mobile devices, enhancing their ability to track sales and maintain transaction histories. This trend underscores the increasing importance of mobile technology in facilitating financial transactions across the continent.
The Central Bank of Nigeria (CBN) has also taken steps to foster a cashless economy by introducing guidelines and raising transaction limits for contactless payments. This regulatory support is crucial in promoting the adoption of digital payment solutions among consumers and businesses alike.
Access Bank’s foray into contactless payments is not a new endeavor; the bank has been actively pursuing this technology for nearly a decade. In 2015, it launched PayWithCapture, an application that enabled users to make payments using QR codes generated through their smartphone cameras. That same year, Access Bank partnered with Unified Payments to introduce PayAttitude, another NFC-enabled product designed to enhance contactless payment options for customers.
Despite the promising landscape for contactless payments, challenges such as regulatory gaps, trust issues, and limited infrastructure remain hurdles to widespread adoption. However, if the Tap to Phone initiative proves successful, it has the potential to significantly transform Nigeria’s payment ecosystem by reducing cash dependency and promoting greater financial inclusion.
The collaboration between Visa and Access Bank in launching the Tap to Phone service represents a pivotal step towards modernizing Nigeria’s payment systems. The success of this initiative will largely depend on the adoption of smartphones by merchants. As of 2023, Statista estimates that there are between 25 million and 40 million smartphone users in Nigeria, with projections suggesting that this number could soar to 143 million by the end of 2025. This anticipated growth in smartphone usage could further accelerate the adoption of contactless payment solutions, ultimately reshaping the financial landscape in Nigeria.
