Visa Reports 320% UK Growth in Smartphone Payment Tech

Visa has announced that its Tap to Phone service has experienced a 320% growth rate in the UK, outpacing the global adoption rate of 200% over the past year.

Tap to Phone technology transforms standard smartphones into point-of-sale terminals through a downloadable application, enabling merchants to accept contactless payments without dedicated hardware. 

The service utilises near-field communication (NFC) capabilities built into modern smartphones.

Data from Visa shows that more than one in five (22%) merchants using the technology in the UK are new small businesses, suggesting the solution is providing market entry opportunities for entrepreneurs.

Small business impact

The technology has found particular traction among micro-merchants and small-to-medium businesses (SMBs) who previously faced barriers to accepting electronic payments due to costs associated with traditional payment terminals.

"Tap to Phone is the ultimate leveller for businesses," says Mandy Lamb, Managing Director UK & Ireland at Visa. 

"That's especially the case for new businesses starting out, that can set up shop and instantly accept payments using a mobile device they already have in their pocket."

Mandy notes that UK consumers made 18.3 billion contactless payments in 2023, demonstrating the market demand for tap payment options.

The technology has shown applications across multiple business types, from pop-up market stalls to larger retailers seeking to equip staff with mobile checkout capabilities on shop floors.

Simon Young, Events Manager and Café Owner at Reuthe's The Lost Gardens of Sevenoaks, reports tangible results from implementing the technology at his Kent-based garden and events business.

"Tap to Phone has been a game changer for us. It's turned every staff member's phone into a mobile checkout, meaning we can make sales anywhere - whether at a pop-up bar, along a woodland trail, or even while feeding the alpacas," says Simon.

His 11-acre venue has seen a 40% increase in sales last year, which Young attributes partly to the ability to process transactions throughout the grounds rather than directing customers to a central payment point.

"We expect overall business growth of 20% this year, and Tap to Phone will play a huge role in that," he says.

Expanding tap ecosystem

Visa reports that the upward trajectory for Tap to Phone is expected to continue as the company expands its tap-based payment solutions portfolio.

In September 2024, the company launched Tap to Add Card globally with Apple Pay. 

This feature allows consumers to add payment cards to digital wallets by tapping physical cards to their smartphones, eliminating manual input of card details.

According to Visa, this functionality has been adopted by more than 100 card issuers and has enabled millions of tokenised transactions. 

The company reports that transactions using this method have demonstrated higher authorisation rates and reduced fraud compared to manually entered card details.

The payments firm has developed additional tap-based services, including Tap to Confirm, an authentication method for high-value transfers, and Tap to Send and Request money, which facilitates peer-to-peer payments between devices.

The latter service, which will be marketed as "Tap to Transfer" on Samsung Galaxy devices, is scheduled for release later in 2025.

“With over 18.3 billion contactless payments made in the UK in 2023 alone, it's clear that consumers love to tap. 

“We're excited to be expanding our tap capabilities even further to create even better payment experiences for people and businesses in the years to come,” concludes Mandy.

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