Mastercard announced this week that it is launching the first live pilot of its new contactless payment acceptance technology, called Cloud Tap on Phone.
The card network is launching the pilot in partnership with two other payment enablement companies. NMI is helping with integration and distribution, and Global Payments is providing point-of-sale technology.
Napa, Calif.-based IT provider Computer Engineering Group will pilot the technology.
“We continue to see an accelerating shift to digital payments, with businesses of all sizes wanting to provide swift, secure, compelling point-of-sale experiences. Cloud POS enables us to make these experiences available to our partners with greater speed and efficiency,” said Milan Gauder, Global Head of Mastercard’s Acceptance Solutions Group.
“Our partners are the center of everything we do, and our trusted technology powers innovative experiences, choice, flexibility and certainty, creating the products they need. Mastercard’s Cloud Tap on Phone delivers on our promise of ground-breaking products and innovation.”
In a press release, the company said that Cloud Tap on Phone uses an Android phone or tablet as an acceptance device, reducing the need to invest in infrastructure such as POS terminals. The new offering is an enhancement of the company’s Tap on Phone product that moves transaction processing and security functions to the cloud. This reduces development and maintenance costs and allows “immediate connectivity to partners,” the company said.
Mastercard is making Cloud POS software development kits (SDKs) available so other providers can use them to help create new cloud-based solutions, it said.
According to Mastercard’s announcement, contactless transactions accounted for 41% of in-person purchases during the third quarter of 2020. That number is up from 37% in the previous quarter and 30% the previous year.
The company plans to conduct more pilots and deployments in other markets this year, it said. Its Tap on Phone solution is currently available in 16 markets worldwide.