MAG Insights

Have you ever wanted to have your consumer create their basket in your app on their mobile device and then tap their card with all the security and guarantees of a card present transaction?  We aren’t quite there yet but it is within reach with the advent of the PCI SPoC/CPoC/MPoC standards and the EMVCo TapToMobile UX guidelines.  In 2023, EMVCo defined the introduction of minimum acceptable criteria and a supporting approval process for TaptoMobile acceptance devices.  These changes have allowed solution providers, the networks and processors to -venture into this new TaptoMobile space.

But there is a lot of confusion on what is available and what it means for the merchant community.  The MAG’s December Innovation Committee had Mastercard and American Express present their plans for Mobile Point-of-Sale using the TaptoMobile technology (presentations are available to merchants on the MAG Learning Center).  Both networks, as well as others, have announced that the applications are available for merchants to put on a mobile device and accept payments from consumers.  The caution is that each network will require independent certification for the application and there are different rules if you want to accept cards with a PIN.  In addition, all the applications require integration with the merchant’s mobile apps and merchant’s POS system.  All parties are asking if the benefits will outweigh the costs and how the merchant community can push this use case further. 

In October, Steve Cole, MAG Director for Technology Engagement, presented to the EMVCo Board of Advisors a proposal to allow for the use of a merchant native app to process payments on mobile devices.  The vision is to allow the merchant to build the TapToMobile functionality into the merchant’s mobile app permitting the consumer to build their basket and tap their card on their own device to complete the in-app purchase.  The goal would be for the merchant to process these payments with the same guarantees as if the consumer were standing at the register.  Please note, this is just a technical proposal to EMVCo at this point and the brands would have to weigh in on the guarantees but know that the MAG is driving hard to take TapToMobile to the next level.  We are also aware of similar solutions that have already been developed and are working to better understand those.  In addition, just like with buy in-store and ship functionality, there are chargeback opportunities for non-receipt or dissatisfaction with the quality of goods.  This is definitely an area that the MAG will continue to watch and push for continued innovation.

What innovations would you like to see in this space and how would you like those innovations implemented?  The perfect opportunity for merchants to discuss these topics is to engage in the Innovation Committee or in the Tech Exec Advisors.  For our sponsors, if you have a technology you’d like for the merchant community to see, the MAG is open to listening and there are many opportunities for you to get these ideas in front of merchants.  For more information or details, please reach out to me or Steve Cole and we will get you engaged.