Tap to Pay Explained: How Contractors Can Get Paid Faster

No one knows better than contractors that time is money. Competition in home services and renovation trades can be fierce. That means efficient payment processing is no longer a luxury—it’s a necessity. 

Want to get paid faster with fewer snags? Tap to pay technology offers a game-changing solution. It eliminates the hassle of handling cash and reduces the risk of lost or stolen payments. And tap to pay often means faster settlement times, so you get your money quicker. 

Tap to pay relegates administrative tasks like waiting for checks to clear and chasing down payments to the dustbins of the past. The future is now. Contactless payments are expected to skyrocket to more than $10 trillion globally by 2027, up from $4.6 trillion in 2022. 

But what is tap to pay exactly? 

Tap to pay, also known as contactless payment, is a quick, secure, and convenient way for customers to pay for goods and services. And it’s easy. With the latest technology, you can even accept in-person payments on your smartphone. Your customer simply taps their contactless card or device to complete the transaction. 

In this article, we’ll break down what you need to know about this popular payment method and how it can benefit your contracting business. 

What Is Tap to Pay? 

Tap to pay is exactly as it sounds—a quick and secure way to pay for goods and services without fumbling for cash or typing in a PIN code. Customers tap or wave their cards or digital devices near a payment terminal. This triggers wireless communication, and the payment is processed almost instantly. 

At its core, tap to pay relies on Near Field Communication (NFC) technology. Your customer’s device has an NFC chip inside it. Your payment terminal contains an NFC reader. Think of NFC as a short-range, very secure radio wave that allows devices to “talk” to each other when they’re close enough—usually within only a few centimeters. 

Imagine tap to pay as a digital handshake. When your client taps their device, their digital wallet app sends encrypted payment information wirelessly to your terminal via NFC. The terminal then processes the transaction just like a regular card payment but without the physical card. 

Devices that Support Tap to Pay 

Tap to pay has become a standard feature in most consumer electronic devices capable of transactions, including: 

• Smartphones: Virtually all new smartphones, both iOS and Android, come standard with NFC capabilities. Even budget-friendly models include it. 
• Smartwatches: A sweeping majority of smartwatches support tap to pay. This includes Apple Watches, Wear OS devices, and other smartwatch platforms. 
• Tablets: Most tablets for general consumer use feature NFC. 
• Other wearables: As tap to pay surges in popularity, NFC has popped up in other wearable devices like rings, bracelets, and even clothing. 
• Payment cards: Contactless payment cards have become increasingly prevalent. These cards have an embedded NFC chip, allowing tap-to-pay transactions just like a smartphone. Check your debit or credit card. The contactless symbol is four curved lines that look like radio waves. 

RELATED ARTICLE: How to Seamlessly Accept Payments as a Small Contractor Business 

Benefits of Tap to Pay for Contractors 

Tap to pay isn’t just about faster transactions. It’s about reclaiming your time. Every minute spent on administrative tasks is time not spent on billable work. 

Tap to pay streamlines the payment process, giving you the freedom to focus on what you enjoy and do best—your work. Your craftsmanship puts food on the table, not the time you spend billing for it. 

And it’s about more than convenience for customers. It’s about building trust. In a trade where reputation is everything, offering quick, modern payment options signals professionalism and reliability. It shows you are easy to do business with and have your eye on the future. 

Tap to pay is also a big step up in security for contractors. Less cash on hand means less chance of theft or losing it. With tap to pay, the money goes straight into your account. 

It’s also harder for thieves to steal card information. Instead of sending your customer’s actual card details, tap to pay uses a unique, random token generated by an algorithm. A different token is generated every time you use your contactless payment terminal. 

You simply hold out your phone with the amount to be charged. Your client gives a quick tap. Within moments, the payment terminal signals when the transaction is approved. Your payment arrives, right there on the spot. 

Contactless payments simplify bookkeeping too. Your records are cleaner. And it’s easier to track what’s coming in. 

With tap to pay, you leave every job with payment in hand, ending each project on a high note. You know you’ve been compensated for your work, ready to move on to the next job. 

RELATED ARTICLE: How to Reduce Late Payments for Contractors 

How Contractors Can Accept Tap to Pay 

Setting up tap to pay is not difficult and should integrate smoothly with how you already run your business. Cover these four steps: 

1. Choose your mobile payment hub. You don’t need a bulky payment terminal. The best part about tap to pay for contractors? You probably already have the equipment in your pocket. Most modern smartphones and tablets have NFC built in and can accept contactless payments with the right app. 
    
   Even if you have an NFC-enabled phone, you might prefer a separate device for business. An inexpensive card reader that connects to your smartphone or tablet will do the trick. It won’t drain your battery and can be more reliable. 

2. Get a good payment partner. You need a payment processor that’s contractor-friendly and integrates with your existing invoicing system. Transactions sync automatically, saving you from double entries and other errors. Joist Payments, for example, partners with Stripe and PayPal to integrate your payments with your estimating and invoicing. 

4. Integrate with invoicing software. If you are already using specialized contractor software like Joist, all you need to do is sign up for the integrated payments offering, Joist Payments, by connecting or signing up for a Stripe or PayPal business account. And if you’re not using Joist, give it a try. Joist was first designed by contractors to give colleagues the freedom to manage their projects from anywhere. 

Challenges and Considerations about Tap to Pay 

Tap to pay is a powerful tool for today’s contractors. But like any technology, it comes with its own set of considerations. Before you jump in, let’s go over some potential challenges. 

• Security concerns: The good news is that tap to pay is generally very secure, thanks to encryption and tokenization. But no system is 100% foolproof. Choose a reputable payment processor with strong security measures. Keep your phone and payment apps updated. Use strong passwords. Keep your eye on any suspicious activity. 
• Fee factors: Payment processors charge a small fee per transaction. These fees vary, so shop around and compare. Some processors might have monthly fees in addition to transaction fees. Read the terms and conditions carefully. 
• Transaction limits: Payment processors usually have default transaction limits. These are sufficient for most jobs, but if you’re doing a large project, give your app the heads-up. 
• Educating your clients: Most people are already familiar with tap to pay, so you won’t need to do much explaining. But some clients are resistant to electronic payments, so it’s often wise to still accept cash or checks. While the customer may not always be right, you should always aim to satisfy them. 

FROM ONE OF OUR PARTNERS: 9 Advantages of a Cashless Business 

4 Tips to Get Started with Tap to Pay Today 

Now that you’re convinced that tap to pay is the way to go, here are four tips to get started today: 

1. Do an NFC check. Is your phone tap to pay ready? The first step is to see if your phone can accept tap to pay directly. 
   • iPhone: Go to Settings > General > About. Scroll down to see if “NFC” is listed. 
   • Android: The exact steps vary by manufacturer, but in general, go to Settings > Connected Devices or Connections and look for “NFC” or “Near Field Communication.” If you can’t find it, do a quick Google search for your phone model and the keyword “NFC.” 
2. Consider buying a card reader. Even if your phone does have NFC, a small, portable card reader can be a smart idea. They’re inexpensive and connect to your phone with ease. They accept both tap to pay and chip card payments. 
3. Research payment processors. Compare their fees. You can also order a card reader from your chosen payment processor. 
4. Try Joist for free. Before you make your final decision on a payment processor, sign up for a free Joist trial. Explore the platform. Both Stripe and PayPal are payment processor options you can use with Joist, and it can help you choose which payment processor is best for your business. 

Joist is great for managing your entire contracting business, including estimates, invoices, payments, client communication, and more. When you combine cutting-edge technology with the human touch, your business will thrive. 

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