The Rise of NFC Payments: How Smartphones Are Shaping the Future of Transactions

NFC (Near Field Communication) payment adoption is accelerating across the globe, transforming how both consumers and merchants interact at checkout. As new data from financial institutions and card schemes shows, mobile wallets and SoftPOS solutions are not just replacing traditional payment terminals — they’re redefining what we expect from a modern payment experience.

This article explores key trends in NFC payment adoption, the growing role of smartphones on both sides of the transaction, and how new use cases are unlocking greater speed, security, and convenience in commerce.

Contactless is Now the Norm — And Smartphones are Leading the Shift

At this year’s MPE conference in Berlin, Mastercard’s Marie Herbiet shared a striking statistic: over 90% of in-person payments in Europe are now contactless. This shift isn't unique to Europe — it reflects a global trend, supported by all major card schemes and local banks.

What’s driving this surge? While contactless cards remain popular, smartphones are rapidly becoming the preferred method for NFC transactions. In Ireland, for example, the Central Bank recently reported that 63% of all contactless in-person payments are now made using smartphones.

This aligns with research from the NFC Forum, which found that 82% of consumers globally have used their smartphones to make payments. Convenience is a major driver — people often have their phone more readily available than their wallet. Importantly, smartphone-based payments can also reduce the need for PIN verification, speeding up the checkout experience.

SoftPOS: Turning Smartphones Into Payment Terminals

Just as consumers are using smartphones to pay, merchants are increasingly using smartphones to accept payments — thanks to the rise of SoftPOS (Software Point-of-Sale) solutions. These applications enable standard smart devices to function as fully compliant payment terminals, without the need for additional hardware.

Both Android and iOS platforms now support SoftPOS functionality. Apple’s launch of Tap to Pay on iPhone and Google’s robust support for SoftPOS apps are helping this trend scale quickly. In the UK, Visa reported a 234% increase in SoftPOS transactions in 2024 alone.

To meet this growing demand, companies like Worldline have integrated SoftPOS capabilities into their platforms, enabling enterprise clients to scale quickly while keeping costs down. By consolidating onboarding, set-up, and reporting, SoftPOS solutions are becoming as easy to manage as traditional terminals — with the added benefit of flexibility and portability.

[For further discussion on SoftPOS, listen to our podcast: Why are big merchants boarding the SoftPOS train?]

Beyond Payments: New Use Cases for NFC Technology

NFC is no longer just about "tapping to pay." Emerging use cases are expanding what’s possible with contactless interactions:

• Tap to Add: Used to securely add a card to a digital wallet. Apple and Amazon both support this, verifying the card’s presence via NFC.
• Tap to Verify: Enhances online transaction security with strong customer authentication, potentially offering card-present protection and lower interchange fees.
• Tap to Activate: Allows users to activate newly issued cards instantly by tapping the card to a smartphone, reducing time to first use.
• Tap to Confirm: Useful for high-value transfers, offering physical verification of the cardholder and enabling optional PIN authentication.
• Tap to Send & Receive: Enables peer-to-peer payments between cards, a capability recently promoted by major card schemes.

Hardware Innovation to Match New Payment Behaviour

As NFC adoption grows, hardware manufacturers are adapting their devices to better support modern payment flows. For instance, in quick-service restaurants (QSR), we’re seeing a shift towards self-order kiosks with integrated payment screens, eliminating the need for separate PEDs (Pin Entry Devices). This improves space efficiency and the overall user experience.

At the Retail Technology Show in London, several manufacturers showcased multifunctional retail hardware — including smart checkout and self-scanning devices — now enhanced with SoftPOS capabilities.

Looking Ahead: Why NFC Will Dominate the Future of Payments

The direction is clear: as NFC-enabled smartphones and software continue to evolve, SoftPOS and mobile wallet payments will become the default for both consumers and merchants.

With card schemes supporting new contactless use cases and platforms like iOS and Android fully embracing NFC functionality, the infrastructure is in place for widespread adoption.

Organisations that stay ahead of these shifts — by embedding NFC-based solutions into their payment strategies — will not only improve the customer experience but also reduce operational costs and unlock new opportunities for scale.

About the Author/s:

David Valero Compte, VP Global Head of Enterprise Retail at Worldline

David Valero is VP Global Head of Enterprise Retail at Worldline, where he leads the global strategy and execution for enterprise retail clients across Europe, APAC, and the Americas. With a background in Telecommunications Engineering, he also holds an Executive MBA from ESADE and a PDG from IESE Business School. David brings more than two decades of experience driving commercial growth and digital transformation in leading technology and payment companies. He previously served as Sales Director for Spain and Portugal at Ricoh and later joined Ingenico as Sales Director and then General Manager for the Retail Division in Iberia. Following the acquisition by Worldline, David took on a dual role as Head of Global Accounts Retail and Country Manager for Merchant Services Iberia. He is known for his strategic vision, commitment to Corporate Social Responsibility, and ability to lead multicultural teams in complex environments. Throughout his career, David has championed innovation and technology as catalysts for business transformation and societal impact.

About Worldline

Worldline [Euronext: WLN] helps businesses of all shapes and sizes to accelerate their growth journey – quickly, simply, and securely. With advanced payments technology, local expertise and solutions customised for hundreds of markets and industries, Worldline powers the growth of over one million businesses around the world. Worldline generated a €4.6 billion revenue in 2023.

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