PayPal and Venmo Launch Tap to Pay for Small Businesses
PayPal has announced the introduction of Tap to Pay technology for Venmo and PayPal Zettle businesses in the United States. Small businesses can now accept contactless payments—including cards and digital wallets—directly on their mobile devices without the need for additional hardware or upfront costs.
According PayPal, nearly 80% of buyers have used contactless payments for purchases. However, until now, small businesses had to invest in contactless point-of-sale systems, as well as manage card readers to accommodate consumers.
“Tap to Pay is the last milestone in the democratization of in-person card payments, where users can start taking card payments with no setup cost in a matter of minutes,” said Ed Hallett, Head of Product, Microbusiness at PayPal in a prepared statement. “We’re unlocking access to this capability for the millions of businesses using Venmo and PayPal Zettle, helping them drive sales with frictionless payment options.”
PayPal and Venmo are competing with other payment service providers and fintech companies that offer similar contactless payment solutions. Square and Stripe have been leaders in providing mobile payment solutions for small businesses, while traditional players such as Visa and Mastercard have also introduced their own contactless payment technologies.
The shift towards contactless payments has been accelerated by the COVID-19 pandemic, as consumers and businesses prioritized touchless transactions to minimize physical contact. Paying via contactless payments has stuck—and adoption has even continued to grow over the past year.
What’s more, the ability to manage both Venmo and card payment transactions in one place highlights the growing convergence of mobile payment apps and the consolidation of financial services in a single platform. This aligns with the broader trend of “super apps” that provide users with a range of services beyond payments, including banking and investing.