Accept Contactless Payments on Your Phone Step by Step

Merchants can accept contactless payments on their phones by using a payment processing app and a near-field communication (NFC) enabled smartphone. This technology, often called “tap to pay,” allows business owners to process credit cards, debit cards, and mobile payments like Apple Pay and Google Pay directly on their devices. They simply open their payment app, enter the sale amount, and have the customer tap their card or phone against theirs to complete the transaction.

How to Set Up Tap to Pay

Set up tap to pay by connecting a merchant service provider like Unicorn Group to your smartphone’s built-in NFC hardware. This process turns your mobile device into a secure terminal, allowing you to accept payments without a physical point-of-sale (POS) card reader. Once your account is verified, you can begin processing sales immediately through a dedicated app.

5 Steps to Set Up Tap to Pay

Follow this checklist to start accepting payments directly on your phone:

1. Check NFC Compatibility: Open your phone settings and verify that NFC is toggled on.
2. Select a Payment Processor: Choose a merchant service provider that specifically supports tap to pay for your device’s operating system.
3. Register a Merchant Account: Sign up with your provider. You will need to link a bank account to receive your funds.
4. Install the App: Download the processor’s official payment application from the App Store or Google Play.
5. Activate Tap to Pay: Navigate to the app’s settings menu and enable the tap-to-pay functionality. You are now ready to accept contactless payments.

How Do NFC Payments Work on a Mobile?

To process a near-field communication payment, the customer taps their contactless card or phone against your smartphone. This tap-to-pay connection uses short-range radio waves to share encrypted data between the two devices instantly. Your phone acts as the terminal, “reading” the payment information.

Using Tap to Pay With Cards and Wallets

While the technology is the same, the process looks slightly different depending on what the customer uses to pay:

• Contactless Cards: The customer holds their chip-enabled card near the back of the merchant’s phone. Your device captures the chip data via radio frequency. This removes the need for physical swiping or dipping.
• Mobile Payments: The customer must first unlock their payment app and select their card. They then tap their device to yours to finish the transaction.

Total time: As long as both you and the customer have internet access, the entire process only takes a few seconds to complete.

Fees and Pricing

Most businesses pay a flat fee between 1.2 per cent and 2.9 per cent per transaction for mobile tap-to-pay sales. Unlike older systems that charged high monthly rentals, modern mobile payments usually follow a pay-as-you-go model. This means you only pay when you make a sale, which is ideal for small businesses and seasonal traders.

Common Costs to Expect

While every provider is different, most pricing structures include:

• Transaction Fees: A small percentage of the sale plus a fixed amount, up to €0.20.
• Card Type: Fees are often slightly higher for international cards or premium rewards cards.

Pros and Cons of Contactless Payments

Accepting mobile payments speeds up your checkout and reduces hardware costs, though it does require a stable internet connection. Weighing these factors will help you decide if a mobile-only setup is right for your business.

Pros	Cons
Lower Entry Cost: No need to buy expensive, bulky terminals.	Internet Reliance: You must have a strong Wi-Fi or data signal to process sales.
Faster Service: Tapping a phone is up to 10x faster than handling cash or swiping cards.	Battery Drain: Running a payment app all day can empty your smartphone battery quickly.
Higher Security: Tokenisation protects you and your customers from data theft.	Limited Old Tech: You cannot accept “swipe” or “dip” cards without an extra attachment.

Troubleshooting Common Problems With Tap to Pay

If a tap-to-pay transaction fails, the most common cause is a disabled near-field communication setting or a thick phone case. Most technical glitches can be fixed in seconds by checking your mobile device and software:

• Check NFC Settings: Ensure near field communication is toggled on in your phone’s connection settings.
• Remove the Case: Heavy-duty or metal phone cases can block the radio signals between the card and your phone.
• Update Your App: Ensure you’re running the latest version of your payment app to avoid security bugs.
• Correct Positioning: The near field communication sensor is usually near the top edge of the phone. Have the customer hold their card there for at least two seconds.

FAQs

Is it worth taking contactless payments on your phone?

Taking contactless payments on your phone is a smart way to take sales anywhere without buying expensive hardware. By turning your smartphone into a payment terminal, you’re able to serve customers at pop-up shops or on-site jobs. As mobile payments become the standard, offering tap to pay ensures your business stays modern and never misses a sale.

Why should I switch to mobile payments?

Switching to mobile payments helps your business meet the growing demand for fast, contactless sales. According to the 2025 World Bank Global Findex, 79 per cent of adults globally now hold financial accounts. In Europe and Central Asia, account ownership has reached 77 per cent as digital payments become the new standard.

While mobile payments are still gaining popularity in some rural areas, the widespread use of smartphones makes this shift inevitable. Moving to a mobile-first system provides four key benefits:

1. Portability: Take secure payments anywhere you have internet.
2. Cost Savings: Avoid buying or renting expensive countertop hardware.
3. Future-Proofing: Keep up with the cashless habits of modern shoppers.
4. Accuracy: Reduce human error and the risks of handling physical cash.

Is mobile tap to pay secure?

Mobile tap to pay is highly secure because it uses credit card tokenisation to hide actual card numbers. When you process a sale, the system encrypts the data and sends it through a secure global payment gateway. This method is much safer than swiping a magnetic stripe. Additionally, all major processors maintain Payment Card Industry (PCI) compliance to meet global fraud protection standards.

Is mobile tap to pay legal?

Yes, accepting mobile payments is legal and follows the same financial regulations as traditional card readers. As long as you use a certified merchant service provider, your tap-to-pay transactions are fully compliant with global security and tax laws.

Do I need a business bank account?

Yes, you must have a business bank account to accept mobile payments. Most payment processors require a dedicated business account to verify your company’s identity and deposit your earnings.

What NFC tech does a new business need to receive contactless payments?

You must link a merchant account to a compatible payment app on an NFC-enabled smartphone to receive contactless payments on your phone. This allows you to accept contactless payments when a customer taps their card or mobile phone against your device.

While a smartphone will handle most modern sales, you’ll still need a small mobile (mPOS) reader if you have customers with older cards. These readers are necessary for cards that require “dipping” or “swiping” to read the physical chip or magnetic stripe.

Can I use my existing NFC tech?

Most businesses with NFC-enabled POS terminals can easily start accepting mobile payments. While some setups require a card reader attachment to accept credit card payments on your phone, the only technical requirement for contactless sales is a smart device with built-in near-field communication capabilities. Check with your merchant services provider to see if your current plan allows you to activate these mobile features.

Future-Proof Your Business With Mobile Payments

Accepting contactless payments on your phone is the fastest way to modernise your checkout and meet customer demand. As mobile payments become the global standard, moving to a mobile-first system reduces your overhead. Replacing bulky hardware with a smartphone allows you to take your business anywhere and focus on growth.

To get started, choose a certified merchant services provider and activate near-field communication on your device. Moving away from cash is a big shift, but the security and speed of mobile payments make it a smart long-term investment. Your merchant provider will show you how to implement this technology so you never miss a sale.

Published: July 19, 2023
Last updated: June 3, 2026