The small terminals for contactless payment with credit or account cards (girocard) are spreading faster and faster from petrol stations and supermarkets to greengrocers or bakers. The renouncement of cash is getting a further boost precisely because of the corona pandemic.
The cell phone is sufficient
Small traders who previously shied away from purchasing such a terminal can now even turn their Android smartphone into a payment terminal. This is made possible with the PhonePOS app, which was launched on the market by CCV GmbH and Rubean AG. In January, this “digital terminal without PIN pad” (TOPP) was approved by the German banking industry.
“The mobile app runs on almost all Android smartphones and tablets and allows retailers to accept card payments anywhere: at the Maroni sales booth, after a plumbing repair on site at the customer’s premises or at the end of a sales talk in a department store,” says Hermann Geupel, CEO of Rubean AG. Use at weekly or flea markets is also conceivable.
Data via short-range radio
To pay, the customer holds his contactless bank card up to the retailer’s smartphone. The device reads the card data via a short-range radio connection (NFC) and sends a payment order to the payment service provider. If the merchant is creditworthy, he will immediately receive approval for payment. If the customer wants a receipt, they have to enter their name and mobile number into the retailer’s smartphone. He then receives the electronic receipt by SMS.
In this process, no more customer data is processed and stored than from the already established payment terminals. However, it is possible that customers cannot always judge with certainty whether the retailer’s smartphone is reading the card data for undesired purposes. It is therefore not unlikely that many customers will continue to prefer paying with cash. Technically, an approach like that of Rubean could also be possible with Apple’s iPhone, but the manufacturer is currently not releasing the corresponding interface.