Access Bank Launches a New Contactless Payment System as an Alternative to PoS Devices

Access Bank has introduced a groundbreaking innovation in Nigeria’s payment landscape by launching a new contactless payment system called “Tap to Phone.” This initiative, developed in collaboration with Visa, allows merchants to accept payments directly on their smartphones without the need for traditional Point-of-Sale (PoS) devices. The Access Bank new contactless payment system is poised to revolutionize how businesses operate by simplifying transactions and reducing reliance on cash.

The Tap to Phone system works by transforming any NFC-enabled Android smartphone into a payment terminal. Merchants can accept payments simply by having customers tap their Visa cards on the phone. This eliminates the need for additional hardware, such as PoS machines, making it a cost-effective solution for small and medium-sized businesses. All merchants need to do is download an app to get started, making the process seamless and accessible.

This launch aligns with the growing trend of contactless payments across Africa. In recent years, various financial institutions and fintech companies have introduced similar solutions in the region. For example, Moniepoint and PalmPay have collaborated with AfriGO to roll out millions of contactless payment cards in Nigeria.

Likewise, Mastercard partnered with First City Monument Bank (FCMB) in 2023 to enable merchants to accept payments using their smartphones. However, Access Bank’s alternative to PoS devices stands out because of its simplicity and potential to reach a wide range of users.

The Central Bank of Nigeria (CBN) has also been actively promoting cashless transactions by introducing guidelines and increasing transaction limits for contactless payments. These measures aim to enhance financial inclusion and reduce the economy’s dependence on cash.

With smartphone adoption in Nigeria projected to grow significantly—from an estimated 40 million users in 2023 to 143 million by the end of 2025, Access Bank’s new contactless payment system is well-positioned for widespread adoption.

This isn’t Access Bank’s first venture into contactless payments. The bank has been at the forefront of such innovations for nearly a decade. In 2015, it launched PayWithCapture, an app that allowed users to make payments via QR codes scanned with their smartphones. It also introduced PayAttitude, another NFC-enabled solution, that same year. These earlier initiatives laid the groundwork for today’s Tap to Phone system.

The benefits of this technology are clear. By eliminating the need for expensive PoS devices, businesses can save costs while improving customer experience through faster and more secure transactions. Additionally, consumers benefit from greater convenience as they increasingly shift away from cash payments.

As Nigeria continues its journey toward a cashless economy, Access Bank’s alternative to PoS devices could play a pivotal role in shaping the future of payments. By leveraging Visa’s Tap to Phone technology, Access Bank is not only modernizing its services but also empowering businesses of all sizes to thrive in an increasingly digital marketplace. This innovation underscores Access Bank’s commitment to driving financial inclusion and fostering economic growth in Nigeria.

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