Saudi Payments to Bring Tap to Phone to the Kingdom with Visa
Saudi Payments, owned by the Saudi Central Bank (SAMA), is working with the digital payments giant Visa to initiate a low-cost mobile acceptance solution as part of its efforts to empower merchants, small and micro businesses (SMBs) in particular across the Kingdom. Known as "Tap to Phone", the solution operates through the Kingdom's national payments network, mada, using the NFC (near-field-communication) technology to allow merchants to accept contactless payments via smartphone devices, instead of buying a separate a separate device.
The launch of Tap to Phone in Saudi Arabia marks a significant step forward for the payments industry of the Kingdom, and it aligns with the goal of Saudi Vision 2030, which is to reduce the reliance on cash. Both SAMA and Saudi Payments aim to bring new financial technological solutions that will benefit all segments of society and increase financial inclusion, and the new solution just serves the purpose.
"We are pleased to be partnering with Visa to bring this solution to market at a relevant time when Saudi consumers increasingly expect and desire to use digital payments wherever they shop, and when many businesses need to go digital to respond to changing consumer behavior...with further penetration of contactless payments, we are confident that demand for secure and convenient digital payments through Tap to Phone technology will continue and even accelerate post-COVID -19," said Fahad Al-Akeel, Saudi Payments Managing Director.
"More than half (53%) of merchants recently surveyed in our Small Business Recovery study showed keen interest in low-cost acceptance solutions. And that's where a cost-effective tool like Visa Tap to Phone comes in, helping businesses go digital quickly, avoid lost sales and improve cash flow by accepting contactless payments anywhere, anytime while improving the customer experience. Customers win too, as they can make payments in seconds by simply tapping their contactless card or phone to the merchant's Tap to Phone-enabled smartphone," added Ali Bailoun, Visa's General Manager for Saudi Arabia.
No additional hardware or extra cost is needed is what makes Tap to Phone different from traditional POS machines. As the business owner, he or she simply has to download a Tap to Phone app and they can start accepting contactless payments right away.
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