The tap-to-pay landscape in 2025 is evolving fast, driven by consumer demand for convenience, speed, and security. Here’s a quick breakdown of the key trends shaping the market:
- Contactless Payments Are Mainstream: 82% of global consumers now use contactless methods, and 65% of U.S. card transactions are tap-to-pay.
- SoftPOS and Tap-to-Mobile: Businesses can now turn smartphones into payment terminals using NFC, removing the need for expensive hardware.
- Wearables and IoT Payments: Smartwatches, rings, and fitness trackers are becoming popular payment tools, with global wearable sales surging.
- Security Enhancements: Tokenization, encryption, and biometric authentication are making contactless payments safer.
- Merchant Benefits: Faster checkouts, higher transaction values, and improved customer satisfaction are driving adoption.
Companies like MerchantWorld are simplifying payment processing with fee-free models and versatile POS systems, making it easier for small businesses to adopt these technologies.
The future of payments is here, and businesses that embrace these changes will thrive in an increasingly contactless world.
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New Trends in Tap-to-Pay Hardware
The world of tap-to-pay hardware is changing quickly, with new developments making contactless payments easier to use, more flexible, and safer than ever before.
Tap-to-Mobile and SoftPOS Solutions
SoftPOS technology is transforming smartphones and tablets into payment terminals using NFC (Near-Field Communication), removing the need for dedicated hardware. By 2030, global SoftPOS transaction values are expected to hit $540 billion, a significant rise from $23.9 billion in 2025. In the UK, Visa reported a 234% increase in SoftPOS transactions in 2024. Daniel Bedford from Juniper Research highlighted the impact of this innovation:
"Bundled POS software reduces financial barriers; making advanced technology more accessible and helping businesses scale efficiently".
Traditional POS systems can cost thousands of dollars, but SoftPOS solutions require minimal upfront investment, making them especially appealing for businesses on the go. With 71% of merchants predicting that software will eventually replace traditional payment terminals, these systems are ideal for mobile vendors, such as food trucks or retail associates processing payments directly on the sales floor. NFC technology in SoftPOS solutions is also expanding its capabilities, from adding cards to digital wallets and verifying transactions to facilitating peer-to-peer payments and activating cards.
In January 2025, Mastercard announced its "Tap on Phone" feature was live in over 110 markets, making it easier for small vendors to accept payments while also streamlining processes for larger retailers. These advancements are also opening doors for payment ecosystems that include wearables and IoT devices.
Wearable and IoT Payment Devices
Wearable devices like smartwatches, rings, and fitness trackers are extending the payment ecosystem beyond smartphones. By 2029, the global wearable tech and IoT market is expected to grow from $70.30 billion in 2024 to $152.82 billion. In 2024 alone, 156.51 million smartwatches, 1.66 million smart rings, and 1.75 million smart glasses were sold globally.
Andy Boothman, the founder of DressCode, summed up the appeal of wearables:
"We love our phones, but there are times and places where it’s just not good to be having a £1,000 bit of equipment around".
The NFC payment market is growing at a 35.9% annual rate, with projections showing an increase from $25.8 billion in 2022 to $507.1 billion by 2032. Similarly, the wearable payment device market is expected to grow from $46.3 billion in 2022 to $184.4 billion by 2032. During the 2024 Olympics, Visa equipped all venues with NFC-enabled terminals, allowing seamless transactions for athletes, visitors, and vendors using smartphones, wearables, or other NFC-compatible devices. Beyond payments, wearable devices are being integrated with loyalty programs, used as tools for ticketing or access control, and even helping businesses streamline cash handling and accounting processes.
As wearable payment hardware advances, it complements the security measures that are boosting confidence in tap-to-pay technology.
Security Improvements in Tap-to-Pay
As tap-to-pay hardware becomes more sophisticated, security measures are evolving to match. Tokenization and encryption now safeguard sensitive payment data, while biometric authentication and AI-powered fraud detection add extra layers of protection. Other advancements include transaction timing analysis to spot NFC irregularities, geolocation-based fraud detection, and spending caps that require PIN authentication after multiple consecutive taps.
The PCI DSS 4.0.1 standard has introduced automated tools to detect unauthorized changes to payment pages, and many banks now allow customers to disable contactless payments remotely through mobile apps. These features collectively enhance protection for both businesses and consumers.
Jennifer Marriner, Executive Vice President of Global Acceptance Solutions at Mastercard, emphasized the broader impact:
"This momentum propels fast, secure consumer experiences and, more broadly, the digitization of payments. And it is capable of so much more".
Integration with Multi-Modal Payment Systems
Modern tap-to-pay technology is transforming how payments are made in the U.S., combining card and digital wallet options into a single, streamlined experience. This shift is paving the way for broader adoption of multi-modal payment systems, which we’ll explore in detail.
Support for Digital Wallets
Today’s tap-to-pay terminals are designed to work seamlessly with popular digital wallet platforms like Apple Pay and Google Pay. Using NFC technology and tokenization for security, these systems have seen rapid adoption. By mid-2024, 65% of U.S. adults are expected to use digital wallets, and among younger consumers aged 18–26, an impressive 91% already rely on mobile wallets as their primary payment method.
Apple’s recent expansion underscores the growing reach of this technology. In June 2025, Apple extended its Tap to Pay feature to eight European countries, including Belgium, Denmark, and Greece. This feature allows merchants to accept payments directly on their iPhones via NFC, eliminating the need for extra hardware. Supported by platforms like Adyen, Stripe, PayPal, and others, this innovation enables businesses to accept payments anywhere they operate.
"No additional hardware is needed, so merchants can accept payments from wherever they do business." – Apple
Additionally, modern smartphones can function as payment terminals through SoftPOS apps, enabling them to accept digital wallet payments without requiring dedicated devices.
Benefits of Multi-Modal Payment Acceptance
Integrating multiple payment options offers more than convenience – it boosts security, increases transaction values, and improves customer satisfaction. For instance, six out of 10 Americans use Apple Pay in stores, and nearly four out of 10 use it for online purchases. Businesses that adopt these systems can serve customers more efficiently and effectively.
Contactless transactions also tend to be more lucrative. On average, their transaction values are 15–20% higher than those of traditional payment methods. Moreover, merchants who partner with multiple acquirers report higher conversion rates, with acceptance rates increasing by up to 16%.
Consumer satisfaction with contactless payments is overwhelming – over 90% of users report being pleased with the experience. Additionally, 79% of Americans view these methods as more hygienic than traditional ones. Convenience plays a big role, too: 32% of shoppers appreciate faster checkouts to avoid long lines, and 11% admit they might abandon a purchase due to excessive wait times.
The numbers reflect a clear trend. In 2023, more than half of all in-store transactions in the U.S. were contactless, and over 70% of American retailers now offer these options. Globally, the market for contactless payments is projected to hit $4.68 trillion by 2027.
This move toward multi-modal payment systems isn’t just about keeping up with technology – it’s about meeting customer expectations and providing the flexibility they demand in today’s fast-moving retail world.
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MerchantWorld‘s Role in Tap-to-Pay Technology
MerchantWorld is making waves in the world of tap-to-pay by focusing on simplifying payment processing and eliminating fees. Through its Cash Discount Program, the company has set itself apart by removing processing fees entirely, offering businesses a more streamlined and cost-effective solution.
MerchantWorld’s 0% Credit Card Processing Solution
MerchantWorld offers a 0% credit card processing plan that cuts out transaction, setup, cancellation, and monthly service fees. The only cost is a Clover Services Monthly Fee of $54.95. This fee structure applies to all major card networks, including Visa, Mastercard, Discover, and American Express. The result? Businesses keep 100% of their revenue, giving them a financial edge.
Key Hardware Offerings by MerchantWorld
At the heart of MerchantWorld’s offerings are Clover POS systems, which support tap, dip, and swipe payment methods. These systems handle credit and debit cards, mobile wallets, and contactless payments with ease.
The Clover Station Pro is the standout option, featuring a 14-inch touchscreen, a full cash drawer, a barcode scanner, and a customer-facing display. All this comes at no equipment cost under MerchantWorld’s 0% processing program. For businesses needing portability, the Clover Flex offers a handheld solution, while the Clover Go provides a compact, portable card reader with full POS functionality via Wi-Fi or cellular connections. These devices go beyond simple payment processing, offering tools like inventory management, customer relationship management, employee tracking, and sales reporting. Additional features can be accessed through the Clover App Market, making the system highly adaptable to various business needs.
"With a Clover point of sale (POS) system, you’ll feel like you can handle it all." – Clover
Clover POS systems have also earned high marks for their durability and performance, receiving an editor’s score of 8.8/10 for their overall value, solid hardware, and excellent customer support. These features are fine-tuned to meet the needs of U.S. merchants.
U.S.-Specific Benefits for Merchants
MerchantWorld offers services tailored specifically for American businesses, focusing on speed, convenience, and compliance.
| Feature | Benefit |
|---|---|
| Same-day approval | Quick setup to get businesses running faster |
| Next-day funding | Helps improve cash flow and financial planning |
| 24/7 customer support | Assistance available whenever needed |
| U.S. compliance focus | Ensures adherence to local rules and standards |
MerchantWorld’s motto – "Made by small business owners, for small business owners" – reflects its dedication to transparency, with no hidden fees and no upfront costs for equipment. By combining cutting-edge payment technology with a fee-free model, MerchantWorld offers a practical solution for U.S. businesses looking to upgrade their payment systems without breaking the bank.
Conclusion
The landscape of tap-to-pay hardware is advancing rapidly in 2025, driven by technological breakthroughs and shifting consumer preferences. With the contactless payment market expected to hit $35.4 billion, U.S. merchants have a prime opportunity to embrace these innovations and stay ahead of the curve.
Let’s break down the key takeaways and what they mean for American businesses.
Key Takeaways for U.S. Businesses
The rise of tap-to-mobile payment solutions and enhanced security measures signals a pivotal shift for merchants. A notable 71% of businesses anticipate software will replace traditional payment terminals, while biometric authentication is becoming a standard feature. These advancements make it easier and more affordable for merchants to adopt, as they can often use devices they already own.
Consumer expectations are also playing a major role. With 81% of shoppers valuing flexible payment options and 43% saying it influences where they shop, businesses that don’t adapt risk losing out. Additionally, 20% of consumers already find embedded payment systems "very convenient", and another 19% plan to use wearables for payments, confirming there’s strong demand for these technologies.
MerchantWorld offers a compelling solution for U.S. businesses. By eliminating processing fees through their Cash Discount Program and providing advanced Clover POS systems at no upfront cost, they make adopting tap-to-pay technology more accessible. Features like same-day approval, next-day funding, and 24/7 support ensure merchants can quickly implement these tools and meet customer expectations.
The future of tap-to-pay hardware holds even greater potential.
Future Outlook for Tap-to-Pay Hardware
Tap-to-pay hardware is set to become even more integrated and user-friendly. Peter Galvin, Chief Marketing Officer at NMI, highlights this trend:
"Tap-to-Mobile Solutions Will Supplant Traditional Hardware as Merchant Favorites"
This shift reflects the growing demand for portable, cost-efficient solutions that simplify payment processes.
Wearable payment technology is also on the rise. As consumers increasingly expect payment options in smartwatches, fitness trackers, and even NFC-enabled clothing, these devices will move from being a novelty to an everyday necessity. Merchants need to be ready to support these emerging payment methods.
The hardware segment of the contactless payment market, projected to reach $17.5 billion by 2025, underscores the industry’s commitment to refining infrastructure. This growth will deliver more advanced terminals, seamless integration, and improved security features, all at competitive prices.
For U.S. merchants, investing in flexible payment solutions today will pave the way for long-term success. MerchantWorld’s offerings provide a solid foundation to navigate and thrive in the evolving tap-to-pay ecosystem. The time to act is now.
FAQs
What are the benefits of SoftPOS technology for small businesses compared to traditional POS systems?
SoftPOS technology brings a host of benefits to small businesses, offering a fresh alternative to traditional POS systems. By transforming a smartphone or tablet into a payment terminal, it removes the need for bulky, specialized hardware. This shift not only slashes upfront costs but also minimizes ongoing maintenance expenses.
Another standout feature is its flexibility and mobility. Businesses can accept payments virtually anywhere – whether in a brick-and-mortar store, at outdoor events, or even while on the move. Plus, SoftPOS supports a variety of payment options, from contactless cards to digital wallets, creating a smooth and modern checkout experience that customers appreciate.
For small businesses aiming to simplify operations and save money, SoftPOS offers a practical, efficient solution that meets their unique demands while maintaining high standards of functionality and security.
What new security features are being introduced to protect tap-to-pay transactions?
How Tap-to-Pay Transactions Are Kept Secure in 2025
By 2025, tap-to-pay transactions are safeguarded through a combination of advanced security technologies. Key measures include encryption, which scrambles payment data to prevent interception, and tokenization, which replaces sensitive information with unique tokens. On top of that, unique device keys ensure payment data stays tied to the specific device being used.
To further enhance security, biometric verification – like fingerprint scanning or facial recognition – adds an additional layer of protection, making sure that only authorized users can complete transactions.
These systems are also backed by strict compliance with industry standards, such as EMV and PCI-DSS, which set the bar for fraud prevention and data security. Together, these innovations make contactless payments not just convenient, but also highly secure for both consumers and businesses.
How will wearable devices shape the future of tap-to-pay technology by 2025?
Wearable devices are poised to reshape the way we use tap-to-pay technology by 2025, offering a faster, more secure, and accessible way to make contactless payments. With the growing popularity of NFC-enabled wearables like smartwatches and fitness trackers, users can simply tap their devices to complete transactions, leaving traditional cards and cash behind.
On top of that, advancements in biometric authentication – think fingerprint scans or facial recognition – are set to boost both security and ease of use. These features ensure payments are not just quick but also well-protected. As these devices become more common, they’re likely to weave themselves into daily routines, encouraging businesses and industries to embrace contactless payments on a much larger scale.