Contactless payment solutions are no longer just a checkout feature. For 2026, contactless payments will be at the center of in-person payment solutions, as consumers expect to tap their cards or devices rather than insert their chip cards or hand over cash. Visa defines contactless payments as payments made by tapping a contactless card or wearable device over a contactless-enabled terminal. Mastercard defines contactless payments as a quicker, safer way to make payments.
For merchants, contactless payments are less about the trend and more about the payment infrastructure. Decisions will need to be made on the type of device to use for contactless payments, whether to use Tap to Phone payments or mobile wallets, and the security measures to implement.
What Are Contactless Payments?
Contactless payments require the customer to hold or tap a contactless card near the payment terminal that accepts them. Both Visa and EMVCo state that the cards, phones, watches, and other devices use the same contactless technology. Furthermore, EMVCo’s contactless resources were created for the devices that merchants use to accept contactless payments at the point of sale.
Contactless payments, therefore, are not a single product but a method of acceptance that can occur at countertop payment terminals, mobile payment readers, and via software-based payment acceptance on NFC-enabled phones and tablets. EMVCo states that Tap to Phone (also called TapToMobile or SoftPOS) can be used interchangeably with the terms Tap on Phone, Tap to Phone, and Tap to Pay.
Why Businesses Are Adopting Contactless Payments in 2026
The first reason is the customer experience. Visa says that contactless payments can improve the customer experience and satisfaction, while Mastercard says that contactless payments are fast, convenient, and 10x faster than most face-to-face payment methods.
The second reason is due to the flexibility of contactless payments. Contactless payments go beyond the payment terminal in most merchants’ establishments. EMVCo’s TapToMobile work and PCI SSC’s MPoC standard indicate the growth of contactless payments on commercial-off-the-shelf devices. This offers merchants more flexibility in accepting mobile and contactless payments throughout the sales floor, with less hardware to purchase.
Who Needs This
This tool is most useful for merchants who regularly accept in-person payments or would like more in-person payment options. This category includes merchants such as:
- retail and restaurants
- service industries
- mobile and field sales
- event and ticketing businesses
- multi-location retail businesses
- small businesses or mobile sellers
- merchants looking to combine multiple payment methods under one program
Any business that relies on in-person sales or flexible employee acceptance of sales will benefit from a robust contactless sales program. This would especially be true for businesses looking to reduce reliance on cash, support customer wallets, or accept contactless payments away from a sales terminal.
Contactless Payment Options Compared
Before choosing a setup, it helps to separate the main contactless acceptance models merchants are actually comparing.
| Option | How It Works | Best Fit | Main Tradeoff |
|---|---|---|---|
| Countertop smart terminal | Dedicated POS hardware accepts tap cards and wallets | Stores, restaurants, front-desk businesses | More hardware cost and less mobility |
| Mobile reader with app | Small reader connects to a merchant device | Pop-ups, mobile sellers, small teams | Still requires separate reader hardware |
| Tap to Phone / TapToMobile | NFC-enabled phone or tablet accepts contactless directly | Service teams, line-busting, low-hardware setups | Depends on supported devices and approved solution stack |
| Hybrid omnichannel setup | Mix of fixed terminals and mobile acceptance | Multi-location or more operationally complex merchants | More setup and reporting decisions |
The practical takeaway is that “best” depends on merchant workflow, not just payment speed. A merchant with a fixed checkout counter may still want a traditional terminal, while a merchant with roaming staff may get more value from Tap to Phone or a mobile-first model.
Common Contactless Payment Mistakes Businesses Make
The most common mistake is thinking contactless is about enabling tap cards. But what about wallets, mobility, signage, and the way your sales staff takes payments? That’s part of the contactless solution. The second most common mistake is thinking that because a business has a Tap to Phone (TTP) solution, it can just roll it out as a solution for every type of point-of-sale (POS) terminal in use by that organization. TTP has its uses, but not for every POS terminal.
The third most common mistake is thinking that because a merchant implements a contactless solution, the provider is responsible for securing the network and systems supporting that solution. While the provider will work to ensure the system’s security, the merchant is responsible for implementing the appropriate contactless solution and ensuring their technology supports it. The Payment Card Industry Security Council (PCI SSC) encourages merchants and their acquirers to use PCI-listed MPoC solutions when selecting a mobile acceptance product.
How to Choose the Right Contactless Payment Solution in 2026
Decide Whether You Need Fixed, Mobile, Or Hybrid
Not all contactless solutions are created the same. For merchants with all in-store transactions happening at one location or register, a contactless terminal might be sufficient. However, for merchants that take payments while moving around the store or while on the go, a mobile or hybrid payment solution might be more appropriate. Contactless solutions like EMVCo and TapToMobile work for both types of merchants.
Make Sure Cards, Wallets, And Wearables All Work Cleanly
Contactless should not only be for tap-enabled cards. The contactless experience should work for phones and wearables. Both Visa and Mastercard state that customers can use their cards, phones, and wearables to pay for their purchases.
Evaluate Tap To Phone As A Real Acceptance Option
Tap to phone payments are not limited to small merchants with few sales locations. EMVCo’s 2024 announcement of their Tap to Phone testing and the PCI Security Council’s Merchant PayWave program provide more options for contactless payment acceptance on software-enabled devices instead of relying upon hardware-enabled devices only.
Treat Security As Part Of The Buying Decision
Contactless payments are fast, but that does not mean they are without security. Both Visa and Mastercard require that each transaction be encrypted. Additionally, the same security standard used for mobile transactions (MPoC) applies to contactless transactions at point of sale (POS) terminals.
Think About Signage And Customer Recognition
Another often overlooked aspect of contactless payments is providing signage for customers to become aware of contactless payment acceptance. While the contactless logo on the card and POS terminal differs from the contactless symbol used at the point of sale, both companies require that merchants provide proper signage in their establishments to inform customers that contactless payments are accepted. If customers do not know of the contactless payment option, the contactless payment solution will go unused.
Choose a Contactless Setup That Supports Future Growth
Consider the future of in-person payments for your business when purchasing a contactless payment solution. In addition to contactless payments, there are also future payments using wallets and mobile devices. Both Visa and EMVCo allow for contactless payments to work on a variety of devices. When selecting a contactless solution, consider future compatibility over present compatibility.
FAQs
Q: What are contactless payment solutions?
A: Contactless payment solutions allow customers to pay for goods and services by tapping a contactless card, phone, wearable device, or other enabled device on a payment terminal. These can include POS terminals, mobile payment terminals, and Tap-to-Phone solutions.
Q: Are contactless payments secure for businesses?
A: Yes. Both Visa and Mastercard state that each contactless transaction utilizes a unique one-time code. Businesses must choose the appropriate contactless payment solution and follow the appropriate PCI security protocol for their terminal device type.
Q: What is the difference between Tap to Phone and a contactless terminal?
A: A contactless terminal is a dedicated point of sale (POS) device that accepts contactless payments. Tap to Phone, also known as TapToMobile, utilizes the built-in NFC technology in a customer’s supported mobile device to accept contactless payments. The experience is the same for the customer, but the merchant’s device is different.
Q: Do contactless payments only mean digital wallets?
A: No. Contactless payments also include tap-enabled credit and debit cards, as well as payment-enabled phones, watches, and other wearable technology. Contactless payments do not refer solely to digital wallets.
Q: Who should consider Tap to Phone in 2026?
A: Any merchant that wants to reduce the number of payment devices they need to purchase and use, who would like to have contactless payment capability with their mobile device, or who wants to have the ability to take payments away from the POS system register, should consider using the Tap to Phone solution. This is especially beneficial for service teams and pop-up businesses or events that want contactless payment solutions without using a countertop POS device.
Q: What should merchants compare between contactless payment solutions?
A: Merchants should compare the contactless payment solution features such as workflow, device type, wallet support, security, and reporting capabilities. The best contactless payment solution for a merchant is the one that best fits their current payment workflow and requirements.
Conclusion
The best contactless payment solutions for 2026 will strike a balance between how quickly payments must occur, what customers expect, and what it looks like for merchants. All of the best payment solutions will feature an appealing way to take contactless and tap payments while offering the merchant fixed and mobile payment devices and software that match their security and workflow needs.
If you are considering making contactless payments part of your business, companies like Payment Nerds may be able to assist you with purchasing the appropriate payment terminals, exploring Tap to Phone options, and even helping you select a merchant account to make contactless payments as easy as possible for your customers.
Sources
- EMVCo. “EMV Contactless Chip.” Accessed March 2026.
- EMVCo. “EMVCo Launches New Testing Process to Support the Use of TapToMobile Devices for Contactless Payment Acceptance.” Accessed March 2026.
- Visa. “Contactless Payments for Merchants.” Accessed March 2026.
- Mastercard. “Contactless Payments.” Accessed March 2026.
- PCI Security Standards Council. “Mobile Payments on COTS (MPoC).” Accessed March 2026.
