Nedbank introduces ‘tap-on-phone’ functionality in Africa

By Pavithra R

Nedbank has announced the launch of new ‘tap-on-phone’ functionality that allows merchants and business owners to convert their mobile phones into payment acceptance devices.

‘Tap on phone’ enables easier payment transaction for small- and medium-sized businesses (SMBs) from their customers for goods or services. The functionality is built on Nedbank’s PocketPOS payment solution and enables contactless payment acceptance.

“Nedbank Retail and Business Banking, tap on phone is another example of Nedbank’s commitment to harnessing its digital strength to deliver inclusive banking services for all. The challenges presented by Covid-19 demand that the world of payments evolves even quicker, and banks must respond by providing innovative ways for businesses to connect with their customers through easy, inclusive and preferably contactless payments solutions. Nedbank’s tap-on-phone functionality enables this by harnessing the power of mobile technology,” said Ciko Thomas, Group Managing Executive.

The new ‘tap-on-phone’ functionality leverages strong security as physical payment terminals and meets Mastercard and Visa requirements. The security is further enhanced by customers not having to hand over their physical bank cards to a merchant when paying. It removes the need for hardware such as point-of-sale (POS) device or fixed data or telephone lines, thereby saving money and time.

“We are pleased to partner with Nedbank to further support small businesses, as they adapt to meet the needs of their customers who are increasingly looking for contactless ways to pay, particularly amid the Covid-19 pandemic. Tap on phone provides consumers with peace of mind and the freedom of choice in how they pay, either by tapping their card or scanning a QR code,” said Suzanne Morel, Country Manager for Mastercard, South Africa.

Recently, Mastercard patterned with QNB Group to perform international payment card transaction in Sudan.

‘Tap on phone’ is the result of a collaborative partnership between Nedbank, Mastercard, Synthesis, and iVeri. The feature aligns with Mastercard’s commitment to delivering quicker and more accessible payments, without sacrificing security for convenience. The functionality is currently in the pilot phase and has been provided to a selection of Nedbank merchants, including individual and business clients. Nedbank has plans to increase the client base in the second half of 2020, after which the technology will be made available to all Nedbank clients and third-party application developers.