{"id":5138,"date":"2024-04-25T11:23:53","date_gmt":"2024-04-25T11:23:53","guid":{"rendered":"https:\/\/zv3d.wpengine.com\/us\/?p=5138"},"modified":"2025-01-29T15:16:32","modified_gmt":"2025-01-29T09:46:32","slug":"the-issuers-guide-to-mobile-based-tap-to-pay-transactions","status":"publish","type":"post","link":"https:\/\/www.zeta.tech\/us\/resources\/blog\/the-issuers-guide-to-mobile-based-tap-to-pay-transactions\/","title":{"rendered":"The Issuers\u2019 Guide to Mobile-Based Tap-to-Pay Transactions"},"content":{"rendered":"
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Contents<\/div>\n
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  1. What is mobile tap-to-pay?<\/strong><\/a><\/li>\n
  2. Issuers’ view of mobile tap-to-pay tokenization<\/strong><\/a><\/li>\n
  3. Issuers’ view of digital wallet onboarding<\/strong><\/a><\/li>\n
  4. Mobile tap-to-pay transaction flow<\/strong><\/a><\/li>\n
  5. Issuing cards for the future of contactless payments<\/strong><\/a><\/li>\n<\/ol>\n<\/section>\n

    2023 saw rapid growth in tap-to-pay, or contactless card payments. Mastercard reported that contactless payments represented over 60% of all in-person switched purchase transactions on their network1<\/sup><\/a>. Similarly, Visa reported that 45% of all their in-person transactions in the US are tap-to-pay transactions2<\/sup><\/a><\/span>.<\/span><\/p>\n

    Mobile-based tap-to-pay payments are an important growth driver of contactless payments. The CFPB published a report on mobile tap-to-pay payments in the US in September 20233<\/sup><\/a>; in it, they cited a Juniper research report stating that the value of digital wallet tap-to-pay transactions will grow by over 150 percent by 20284<\/sup><\/a><\/span>.<\/span><\/p>\n

    These are critical trends for issuers as they need to drive digital adoption of their cards to maintain transaction volumes. <\/span>This blog breaks down the hype around mobile wallet tap-to-pay, explains the tech that makes consumers love it, and highlights the capabilities issuers need to ride this trend.<\/p>\n

    What is mobile tap-to-pay?<\/span><\/h2>\n

    Contactless payments can be made using cards (by tapping your card on the point of sale (POS) machine instead of dipping or swiping it) as well as using mobile-based digital wallet applications (by adding your card to Apple Pay, Google Pay or Samsung Pay mobile wallets).\u00a0<\/span><\/p>\n

    Digital wallets allow users to \u2018add\u2019 their cards to the application, which then tokenizes the card to save it securely. At the time of transacting, the user simply unlocks their phone and taps the mobile device on the POS machine. The wallet uses the mobile device\u2019s in-built Near Field Communication (NFC) capability to communicate with the NFC-enabled POS machine and securely relay the card credentials. We explain this in more detail in the following sections.\u00a0<\/span><\/p>\n

    With a card added to a mobile device, a mobile tap-to-pay transaction is different from card-based tap-to-pay in the following ways:<\/span><\/p>\n