Phos and Thrive Team to Tap Into Contactless Payment Growth

Thrive Payments has teamed with point-of-sale firm Phos to deploy its contactless payment solution.

According to a Tuesday (Feb. 21) news release, the deal lets Thrive’s merchant customers accept card payments on any near-field communication (NFC) enabled smartphone or tablet, allowing them to expand their payment acceptance points without expanding their hardware.

“Our partnership is a significant step forward in our shared mission to bring secure, contactless payments on mobile to businesses across North America and Latin America,” Phos CEO Brad Hyett said in the release. “It will allow us to reach more US merchants than ever before and collectively drive the adoption of Tap-to-Phone technology on a truly global scale.”

The companies say the partnership is happening amid a rise in demand for contactless payments, which has led merchants to rethink their payment processing offerings.

As PYMNTS reported in January, contactless use has increased as consumers find the tap-and-go nature of the technology quicker and easier than inserting a card.

Research by credit union services organization PSCU found that the number of credit union members using contactless cards rose 14% in 2022, with 82% of those consumers saying they used their cards at least a few times a year. When asked why, these customers reported ease of use, convenience and speed as the three main reasons.

Meanwhile, “larger retailers are doubling down” on contactless features, Peter Davey, senior vice president and head of the Innovation Lab at The Clearing House, told PYMNTS in an interview published Wednesday (Feb. 22).

He noted that companies such as Kroger, Target and Walmart have been allowing for self-directed checkout at scale.

“These commerce behemoths, and others, are finding particular value in the fact that seamless checkout helps cut costs, boost security and improve the overall customer experience,” PYMNTS wrote. “Where QR codes were moribund before the pandemic, suddenly they’re enjoying a renaissance as consumers have gotten so used to using their own devices to get things done on a daily basis.”

That report also noted there’s a huge opportunity to promote scan-and-go functions within the aisles, though the retail world may not be there yet. Customers find it jarring, and stores worry about shoplifters. Wegmans, for example, suspended its scan-and-go app last fall as it figures out how to improve the process and reduce theft.

“I call it ‘organized shoplifting,’” Davey joked about scan-and-go. “It makes consumers feel like they didn’t pay for something.”