Prophius, a financial technology company dedicated to expanding the payment acceptance value chain through innovative and cost-effective payment solutions, has partnered with Mastercard Incorporated MA to launch its new program “PayContactless solution” – a contactless acceptance solution that transforms any NFC-enabled Android device into a physical point of sale.
This initiative is expected to encourage consumers’ choice for secure and convenient digital payments while increasing small and micro business adoption of digital payments in Nigeria, Ghana, Kenya, Uganda, and other important markets in Sub-Saharan Africa.
PayContactless was designed by leveraging the power of the inexpensive digital payment technology known as Mastercard Tap on Phone, which was developed in 2020 by the tech giant. Using the solution that Mastercard has developed, Android smartphones can now function as secure payment acceptance devices for use with contactless cards, mobile wallets, and smartwatches. additionally, there is no prerequisite hardware or initial cost for the cellphones to function as a physical point of sale (POS).
Small enterprises and consumers benefit from the new solution
A consumer who chooses to pay using the PayContactless solution simply has to tap a contactless card or wearable to the merchant’s device. If the purchase amount is higher than the customer’s verification threshold for contactless payment, however, the client will be asked to enter the bank card PIN (known only by the cardholder) on the merchant’s phone.
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The widespread adoption of this new solution is projected to benefit both small enterprises and the consumers that patronize them. The ability to take card payments easily will benefit small businesses. Shoppers, like enterprises, will benefit from the enhanced convenience and safety at the checkout.
Achieving this milestone makes Prophius the first Financial Technology (Fintech) in West Africa to get Mastercard certification for Tap on Phone and perpetuates the company’s objective to facilitate trade and provide seamless payment experiences at the point of sale.
“This is the next level for us in our effort to allow trade at the doorstep in a simple, affordable, and effective manner,” Olugbenga Adams, founder and chief executive officer (CEO) of Prophius, stated. “It is particularly useful for small businesses that want to accept payments but can’t afford the necessary hardware. and also for partners, such as financial institutions and Fintech companies, that want to enhance their existing products with contactless payments acceptance.”
Prophius is collaborating with a number of financial institutions across Sub-Saharan Africa to provide this service to small companies beginning in October 2022.
The partnership aligns with Mastercard’s objectives
Ebehijie Momoh, Country Manager & Area Business Head, West Africa at Mastercard, says “Small businesses are crucial for systemic economic recovery, and by connecting more SMEs to digital commerce tools and affordable payment acceptance solutions, we are putting in place a strong foundation that can facilitate sustainable growth.
“Through our relationship with Prophius, we can further boost financial inclusion and assist these companies in creating fresh and best-in-class contactless customer experiences utilizing a device they already own: a smartphone,” she added.
Tap on Phone functionality is aligned with Mastercard’s goal of bringing 50 million micro and small businesses into the digital economy by 2025 and providing faster and more accessible payments without compromising security.
Mastercard’s latest partnership exemplifies the company’s ongoing efforts to integrate cutting-edge digital solutions into the global payments ecosystem, therefore bringing more individuals and organizations within the purview of a flourishing digital economy.
The MA solution that converts smartphones into payment acceptance devices appears to perfectly grasp the burgeoning opportunities in the global digital payments industry as mobile phones become more vital to our daily lives as a convenient technology.
It is expected that Mastercard’s expansion of its Tap on Phone service across all of Sub-Saharan Africa would help to further fortify the company’s footprints in the region, which is experiencing a rapidly increasing use of digital technology.
Mastercard’s most recent program to aid small companies comes at a spur of the moment. Micro and small enterprises struggled with insufficient resources and financial difficulties as a result of the COVID-19 epidemic, despite the fact that they operated in a rapidly changing digital environment in which firms were pushed to incorporate digitalization into their operations. Since then, Mastercard has continuously partnered with a wide range of well-established organizations, supplying a variety of cutting-edge digital payment solutions and pursuing substantial investments, in order to rescue such enterprises from catastrophe.
Other companies making active attempts to buffer small businesses, like Mastercard, include American Express Company (AXP), Visa Inc. (V), and Global Payments Inc. (GPN).