Comparison

Proximity payment vs tap to pay.

Tap to pay needs a deliberate tap at a terminal. The proximity method detects the nearest provider at range and routes payment through a server.

Published July 29, 2024
The honest verdict

Tap to pay is NFC: it works over a few centimetres and needs a deliberate tap against a terminal. The proximity method detects the nearest provider at range over short range radio, then routes payment through a central server, so the two devices never connect directly. Tap to pay suits a fixed terminal you can reach. The proximity method suits vehicles, counters, and hands free flows where a tap is impractical.

What each one is built for

Tap to pay is the contactless rail most people already use. It runs on NFC, a very short range link measured in centimetres, and it expects a deliberate tap against a terminal. That short distance and that gesture are features. They make intent explicit, and the acceptance ecosystem, from issuers to terminals, is already everywhere.

The proximity method starts earlier, at detection. A provider broadcasts a short range signal, the customer's phone identifies the nearest provider, and the pairing is registered with a central server. When a payment is ready it routes through that server to the right recipient. The two devices never connect directly, and nothing is sent until the person chooses to act. This is the heart of the parent patent US10657515B2.

The two are not opposites. NFC is one of the transports the proximity method can sense, alongside Bluetooth, ultra wideband, and WiFi Direct. The real difference is the architecture. Tap to pay closes the loop at the terminal. The proximity method resolves who is nearby and settles through a server, which is what makes a payment possible when there is no terminal to tap.

Side by side

Proximity payment vs tap to pay
DimensionProximity methodTap to pay
InteractionAutomatic detection at range, no gesture requiredA deliberate tap against the terminal
Working distanceShort range radio, from centimetres to tens of metres depending on the transportVery short range, on the order of a few centimetres
Where payment routesThrough a central server to the right recipientBetween the card or phone and the terminal over NFC
Hardware at the point of saleA broadcasting device and the customer's phoneA certified NFC terminal
Identify before payingYes. Presence can be confirmed without moving money, per the divisional patentNo. The tap authorises a payment
Best fitVehicles, counters, and hands free or accessibility first flowsFixed terminals a customer can reach
Privacy modelNothing is sent until the customer actsThe tap is the action, and tokenised card data is exchanged

Choose Tap to pay (NFC) when

  • A fixed terminal is right in front of the customer.
  • A deliberate confirming gesture is desirable at checkout.
  • You want to ride the existing contactless acceptance network with no new hardware.

Choose the proximity method when

  • There is no terminal to tap, as in a vehicle or across a counter.
  • The payment should be hands free, or usable without fine motor control.
  • You need to know which provider is nearest before any money moves.

Common questions

Is the proximity method just NFC by another name?
No. NFC is one of the short range transports it can sense, alongside Bluetooth, ultra wideband, and WiFi Direct. The difference is the architecture: the proximity method identifies the nearest provider and routes payment through a central server, rather than closing the loop at a terminal.
Does tap to pay work at a distance?
Not by design. NFC operates over a few centimetres and needs a deliberate tap. That is intentional. The proximity method is built for the case where the payer and the payee are not at the same terminal.
Is the proximity method patented?
Yes. The parent patent US10657515B2 covers proximity identification and server routed payment, and a divisional, US11392923B2, adds identification without payment and standalone device claims. The method is granted in eleven jurisdictions.

Sources

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Licensing

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