| Business Payments |
Tap to pay on phone, or SoftPOS, lets a compatible smartphone accept contactless card payments without a separate reader. Published UK rates for such apps start from 1.69% per transaction. PIN entry is supported on the phone screen for transactions above the contactless limit, which is typically £100. Security is underpinned by PCI standards.
SoftPOS turns a phone into a card terminal, with rates from 1.69% and PIN entry on screen for transactions above the contactless limit.
KEY FACTS
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LAST REVIEWED 2026-09-06
How tap to pay on phone works
Tap to pay on phone, also known as software point of sale (SoftPOS), uses the near-field communication (NFC) chip already built into many smartphones to accept contactless card payments. The merchant downloads an app from a provider such as SumUp, Zettle by PayPal, or Revolut, and after a quick onboarding process, the phone becomes a payment terminal. The customer simply taps their contactless card or mobile wallet against the back of the phone, and the transaction is processed over the internet or mobile data connection.
The technology relies on the same secure element and NFC hardware used for mobile payments like Apple Pay and Google Pay. The app encrypts the payment data and sends it to the payment processor, which communicates with the card networks and the customer's bank. The merchant receives a confirmation on screen, and the funds are typically settled into their business bank account within one to two working days.
SoftPOS is distinct from traditional mobile card readers, which require a separate hardware device that connects to the phone via Bluetooth or a headphone jack. With SoftPOS, no additional hardware is needed, reducing upfront costs and making it easier for small businesses, market traders, and mobile professionals to accept card payments anywhere.
iPhone vs Android
Both iPhone and Android devices can support tap to pay on phone, but there are differences in availability and implementation. Apple's iPhone models from the iPhone XS onwards include NFC hardware that can be used for SoftPOS, and Apple introduced a dedicated framework called Tap to Pay on iPhone in 2022. This allows approved payment platforms to offer SoftPOS on iPhones without any additional hardware. In the UK, providers such as Revolut and Zettle have rolled out Tap to Pay on iPhone to their business customers.
Android devices also have NFC capabilities, and Google has provided a similar framework called Tap to Pay on Android, which is available to approved payment service providers. However, the range of compatible Android devices can be broader, as many Android phones include NFC, but the software must be optimised for each device model. Some providers may only support specific Android models, so merchants need to check compatibility before signing up.
In terms of user experience, both platforms offer similar functionality: customers tap their card or phone, and the transaction is completed within seconds. The main differences lie in the specific provider apps and the devices they support. For example, SumUp's SoftPOS app works on both iPhone and Android, while some providers may initially launch on one platform before expanding to the other.
Rates and limits
When it comes to pricing, published rates for UK SoftPOS apps vary by provider. For example, SumUp charges 1.69% per transaction for its SoftPOS solution, which is the same rate as its standard card reader. Zettle by PayPal charges 1.75% for transactions taken with its SoftPOS app, while Revolut's pricing starts at 1.69% for its basic plan, though this may require a monthly subscription. These rates are per transaction and include all card scheme fees.
There is also a transaction limit to consider. In the UK, the contactless payment limit is currently £100, which means that any single transaction above this amount cannot be processed as a contactless tap. For SoftPOS, this limit applies to the initial tap, but if the transaction exceeds £100, the customer may be prompted to enter their PIN on the phone screen to authorise the payment. This is known as 'PIN on glass' and allows higher-value transactions to be accepted.
It is important to note that some providers may impose their own transaction limits, which could be lower than the contactless limit. For example, a provider might cap SoftPOS transactions at £50 or £100 depending on their risk assessment. Merchants should check the terms of their chosen provider to understand any specific limits.
| Provider | Platform | Rate | Limit | Source |
|---|---|---|---|---|
| SumUp | iPhone & Android | 1.69% | £100 (contactless limit) | Provider website |
| Zettle by PayPal | iPhone & Android | 1.75% | £100 (contactless limit) | Provider website |
| Revolut | iPhone & Android | from 1.69% | £100 (contactless limit) | Provider website |
PIN on glass and security
One of the key features of SoftPOS is the ability to accept PIN entry directly on the phone screen, a method often referred to as 'PIN on glass'. This is necessary for transactions above the contactless limit of £100, as well as for certain card types that may require PIN verification. When a customer taps their card and the transaction amount exceeds the limit, the app prompts the customer to enter their PIN on the merchant's phone. The PIN is encrypted and sent securely to the card issuer for verification.
Security is a paramount concern for SoftPOS, and the technology is designed to meet stringent industry standards. The Payment Card Industry Security Standards Council (PCI SSC) has developed specific guidelines for software-based PIN entry, known as PCI CPoC (Contactless Payments on COTS). This standard ensures that the software and the device meet security requirements to protect cardholder data. Providers offering PIN on glass must be certified to this standard.
In addition, the NFC communication between the card and the phone uses the same secure element technology as contactless payments at traditional terminals. The transaction data is tokenised, meaning that the actual card number is not transmitted; instead, a unique digital token is used. This reduces the risk of fraud. Merchants should always use reputable providers that are fully compliant with PCI DSS and CPoC requirements to ensure the highest level of security.
Which providers offer it
Several payment providers offer tap to pay on phone solutions in the UK. SumUp was one of the first to launch a SoftPOS app, available for both iPhone and Android, with a simple pricing structure of 1.69% per transaction. Zettle by PayPal also offers a SoftPOS app, with a rate of 1.75% per transaction, and it integrates with PayPal's ecosystem. Revolut has introduced Tap to Pay on iPhone for its business customers, with rates starting at 1.69% for those on a paid plan.
Other providers include myPOS, which offers a SoftPOS solution with rates from 1.69%, and Worldline, which has developed SoftPOS for larger enterprises. Additionally, Stripe has launched a SoftPOS SDK that allows businesses to integrate tap to pay into their own apps, though this requires more technical setup. The availability of these services may vary, and some providers may require a monthly subscription or have minimum turnover requirements.
When choosing a provider, merchants should consider not only the transaction rate but also any monthly fees, settlement times, and the quality of the app. It is also important to check whether the provider supports both iPhone and Android, as some may initially launch on one platform only. As the technology matures, more providers are expected to enter the market, offering competitive rates and features.
Limitations vs hardware
While tap to pay on phone offers convenience and lower upfront costs, there are limitations compared to dedicated card readers. One limitation is the transaction limit: as mentioned, the contactless limit is £100, but for higher amounts, PIN entry is required. While PIN on glass supports this, some customers may be hesitant to enter their PIN on a merchant's phone, which could lead to abandoned transactions. In contrast, a dedicated reader with a built-in PIN pad may be perceived as more secure.
Another limitation is battery life. Using the phone as a payment terminal can drain the battery quickly, especially during busy periods. Merchants may need to have a charger available or carry a power bank. Additionally, the phone's screen must be in good condition, as a cracked or unresponsive screen could hinder PIN entry.
SoftPOS also relies on a stable internet or mobile data connection. If the connection is poor, transactions may fail, whereas some traditional terminals can store transactions offline and process them later. Furthermore, not all phones are compatible; the device must have NFC and meet the provider's specifications. Finally, while SoftPOS is suitable for small businesses and mobile merchants, it may not be ideal for high-volume environments where a dedicated terminal with a faster checkout process is more efficient.
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Disclaimer. This guide is editorial information drawn from primary sources. It is not financial, legal or tax advice and does not recommend any provider. Figures are those published by the named sources on the review date and may change. Kael Tripton Ltd receives no commission, referral fee or lead payment from any provider named on this page. |
Frequently asked questions
Can I take card payments on the iPhone without a reader?
Yes, you can take card payments on your iPhone without a separate card reader using tap to pay on phone technology, also known as SoftPOS. This uses the iPhone's built-in NFC chip to accept contactless payments. You need to download a compatible app from a provider such as SumUp, Zettle, or Revolut, and complete a quick onboarding process. Once set up, customers can tap their contactless card or mobile wallet against your iPhone to make a payment. The transaction is processed securely, and funds are typically settled into your business account within a few days.
Is there a transaction limit?
Yes, there is a transaction limit for tap to pay on phone. In the UK, the contactless payment limit is £100, which means that any single transaction above this amount cannot be processed as a simple contactless tap. However, for transactions above £100, the customer can be prompted to enter their PIN on the phone screen (PIN on glass) to authorise the payment. This allows higher-value transactions to be accepted. Some providers may also impose their own transaction limits, which could be lower than the contactless limit, so it is advisable to check with your provider.
How is PIN entered?
For transactions above the contactless limit of £100, or when required by the card issuer, the customer is prompted to enter their PIN directly on the merchant's phone screen. This is known as 'PIN on glass'. The phone's screen displays a secure PIN entry interface, and the customer taps in their PIN. The PIN is encrypted and transmitted securely to the card issuer for verification. This method is certified to PCI CPoC standards, ensuring that the software and device meet security requirements. It provides a convenient way to accept higher-value payments without needing a separate PIN pad.
Is softPOS secure?
Yes, SoftPOS is secure when implemented by reputable providers that comply with industry standards. The technology uses the same NFC secure element as contactless payments at traditional terminals, and transaction data is tokenised, meaning the actual card number is not transmitted. For PIN entry, providers must be certified to PCI CPoC (Contactless Payments on COTS) standards, which ensure that the software and device meet strict security requirements. Additionally, the overall payment processing must comply with PCI DSS. Merchants should choose providers that are fully certified and follow best practices to ensure the security of cardholder data.
Which providers offer tap to pay on phone?
Several providers offer tap to pay on phone in the UK. SumUp offers a SoftPOS app for both iPhone and Android with a rate of 1.69% per transaction. Zettle by PayPal also provides a SoftPOS app with a rate of 1.75%. Revolut has launched Tap to Pay on iPhone for its business customers, with rates starting at 1.69% for paid plans. Other providers include myPOS, Worldline, and Stripe, which offers a SoftPOS SDK for custom integrations. Availability may vary, and some providers may require a monthly subscription or have specific device compatibility requirements.
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