Access Bank, in collaboration with Visa, has introduced "Tap to Phone" in Nigeria, a new product that enables merchants to accept contactless payments using NFC-enabled Android phones.
According to a statement, Tap to Phone will transform an Android smartphone into a payment terminal, allowing merchants to accept Visa payments simply by tapping a Visa card to their phone. This eliminates the need for traditional Point of Sale (PoS) systems. Merchants only need to download an app to their smartphones to begin accepting payments.
This initiative joins a growing trend of contactless payment solutions in Africa. In September 2024, Interswitch partnered with Tuma to launch a similar system in Kenya. Moniepoint and PalmPay have also partnered with AfriGO to introduce five million contactless payment cards in Nigeria.
Visa's partnership with iKhokha in South Africa similarly enabled business owners to accept card payments on their mobile devices, enhancing sales tracking and transaction history.
The Central Bank of Nigeria (CBN) has introduced guidelines and increased transaction limits for contactless payments, with the aim of promoting a cashless economy.
This is not Access Bank's first venture into contactless payments. In 2015, the bank launched PayWithCapture, an app that allowed users to make payments using a generated QR code via their smartphone camera. In the same year, it partnered with Unified Payments to offer PayAttitude, an NFC-enabled contactless payment solution.
While regulatory gaps, trust issues, and limited infrastructure could pose challenges, the widespread adoption of Tap to Phone could revolutionize Nigeria's payment landscape by reducing cash dependency and enhancing financial inclusion.
Visa and Access Bank's 'Tap to Phone' initiative represents a significant step towards modernizing Nigeria's payment systems. Its success will largely depend on smartphone adoption by merchants. As of 2023, Statista estimates the number of smartphone users in Nigeria to be between 25 million and 40 million, projecting a potential increase to 143 million by the end of 2025.
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