National Australia Bank (NAB) is testing new software that means customers may no longer need a physical payment terminal to purchase goods.
Partnering with Visa and Quest Payment Systems, NAB is experimenting with a ‘tap on phone’ platform that they hope will benefit an increasingly cashless society.
The app threatens regular payment systems as it does not require the traditional plugin method.
People “are carrying less cash”
Andy Kerr, NAB executive general manager, transaction banking, says: “Since the introduction of tap-and-go payments, Australians are carrying less and less cash which can impact sales and growth for small businesses. We’ve heard loud and clear from our customers that they want access to payment technology without the additional hardware associated with a traditional POS terminal…This pilot will address the current gap where businesses aren’t big enough to need a POS terminal but are established enough to accept contactless card payments.”
The app is currently being tested with 200 small businesses in Istanbul. But it’s hoped that it will be officially available in a few months’ time.
Firms testing similar products
Other banks across the world have also spoken about their plans to use similar tech to add to their services.
Last year, Commonwealth Bank of Australia said they would be using technology from AI brand, IDEMIA, that produces a white label version of Mobeewave’s SoftPOS technology and Digital Enablement.
Whilst Dutch Bank ING said they have been working with Mastercard to also build a ‘tap on phone app’. They hope this will revolutionise the payment industry by using phones as a point of sales devices.