Tap to pay turns a phone into a card reader. A customer taps a card, phone or watch on the back of your phone, and the sale goes through with no extra hardware. For a lot of small businesses that is all they need. For others it causes more problems than it solves.
Here is how to tell which one you are.
How tap to pay on a phone works
Tap to Pay on iPhone, and tap to pay on Android phones, let a payment app read contactless cards and digital wallets such as Apple Pay and Google Pay through the phone itself. You open your provider's app, enter the amount, and the customer taps.
The phone doesn't keep the card number. A contactless payment sends a one-time code instead of the real card number, which is why tapping is one of the safer ways to take a card.
What tap to pay can't do
- It can't take a card that has to be inserted or swiped. Most cards today can tap, but some still can't, and some customers prefer not to.
- It doesn't print receipts. Customers get them by text or email.
- It ties up your phone, and most apps need a data signal.
- It is one phone and one checkout. Busy counters and several staff need more than that.
Your three options
Most businesses land on one of three setups. For example, Clover Go is a small reader that pairs with your phone, the Clover Flex is a handheld with its own screen and printer, and the Clover Mini sits on the counter.
| Option | Takes | Best for |
|---|---|---|
| Tap to pay on your phone | Contactless cards, phones and watches | Occasional sales, pop-ups, starting out |
| Small reader paired with your phone | Tap and chip cards | Mobile businesses with steady sales |
| Handheld or countertop terminal | Tap, chip and swipe, with printed receipts | Daily volume, counters, restaurants, events |
When tap to pay on your phone is enough
- You make a handful of sales a week, like a one-truck trade business or a weekend booth.
- Most of your customers already pay by tapping a phone or card.
- You want to start today without buying anything.
When to get a card reader or terminal
- You take payments every day, or more than one person takes them.
- Customers ask for printed receipts, or you want them to add a tip on a screen they hold.
- You work where phone signal is weak and need a device with its own cellular connection.
- You can't afford to lose a sale because a customer's card only works with a chip.
Does tap to pay cost more?
Usually not. A tap on your phone is an in-person card payment, and it is generally priced like a tap on any terminal. What changes the cost is the plan behind it: flat-rate apps charge the same rate on every card, while a merchant account is priced from your real card mix. Check how your provider prices it before you choose.
Common questions
Can I use Tap to Pay on iPhone for my business?
Yes. Tap to Pay on iPhone works on newer iPhones through a payment app from your provider, with no extra hardware. Your provider has to support it, so check before you sign up.
Do I need a merchant account to use tap to pay?
You need a payment provider either way. Apps like Square and Stripe set one up for you on flat-rate pricing. A merchant account in your own name can also take tap to pay through a supported app, such as Clover's, priced from your real card mix.
Is tap to pay safe for my customers?
Yes. A contactless payment sends a one-time code instead of the real card number, the card never leaves the customer's hand, and your phone doesn't store the card.
What if a customer's card won't tap?
With a phone alone you need another way to take it, such as a payment link sent by text. That is the main reason businesses with steady sales add a small reader that also takes chip cards.