Tap to Pay on a smartphone: options for iPhone and Android in Australia

Tap to Pay solutions in Australia

In 2025, Australian merchants have quite a few iPhone and Android EFTPOS options.

Since payment providers want to stay competitive, many well-known EFTPOS companies have introduced their own Tap to Pay options. These are usually either separate apps or features added to their existing apps.

Here’s a complete overview of Tap to Pay solutions in Australia:

* Software development kit (SDK) for adding Tap to Pay to your own payment app.

In Australia, the following providers offer Tap to Pay out-of-the-box on both iPhone and Android devices:

• Square
• Zeller
• Westpac
• ANZ Worldline
• Tyro

At Square, it’s available in an app that also connects with Square Reader, sends payment links and accepts QR code payments. Merchants signed up with Zeller can enable Tap to Pay in Zeller App.

Although Square offers the most adaptable, user-friendly features, its transaction rate of 1.6% for Visa, Mastercard, eftpos and Amex cards is not the lowest.

SumUp matches this rate with its EFTPOS app for Android, but doesn’t yet offer Tap to Pay on iPhone.

Zeller, Westpac, NAB and Tyro charge 1.4%, also without monthly fees or a contract (in most cases). ANZ Worldline charges even less per transaction – 1.3% – but comes with hidden fees.

Only Android users can opt for NAB and Airpay, though we don’t recommend the latter because Airpay’s fees are higher (rates go higher than 1.29%) and require a year’s commitment.

Image: Square

The complex solutions

Stripe and Adyen are both intended for developers and large businesses wanting to add Tap to Pay functionality into their own software. We therefore don’t recommend it for individual entrepreneurs or small businesses that simply just need to accept contactless payments.

For example, Xero has Stripe integrated in its accounting software, so accounting users only need to sign up with Stripe to accept contactless taps.

Is Tap to Pay right for everyone?

Should you use your phone as an EFTPOS machine? Not necessarily.

As exciting as the idea sounds, tap-on-phone is only suitable in certain cases.

Consider these pros and cons of Tap to Pay before you opt for it:

Advantages

Disadvantages

A couple of the disadvantages relate to customers having to touch and hold the phone.

Sometimes, a Tap to Pay app might ask for a PIN code, mainly when the transaction amount exceeds the contactless limit ($100 or $200 for physical cards). The merchant is then forced to give the customer the smartphone so they can enter the code on the touchscreen.

This is not the most hygienic solution, and customers may also be reluctant to enter their card PIN on a stranger’s phone if they’re concerned about security.

Some merchants may think about purchasing a phone to dedicate exclusively for this purpose, but then why not buy a card reader that’s cheaper and less likely to be stolen?

In addition, tap-to-phone only processes contactless payments, not chip cards that have to be inserted. If a chip card doesn’t have a contactless function, your smartphone will be useless.

Also, even the most modern smartphones need to be charged more frequently than dedicated EFTPOS readers.

So when can it be a good solution?

Tap to Pay could be considered a secondary card reader for emergency situations (e.g. during technical issues with an EFTPOS terminal or WiFi) or to accept payments from customers who can’t pay in cash (if you try to be a cash-only business).

Card reading capabilities in a smartphone is also useful for home deliveries and shops, bars and restaurants with large serving areas. Portability is, in fact, the main advantage of tap and go on phones.

Is a card reader better than Tap to Pay?

Mobile card readers are inexpensive EFTPOS terminals linked over Bluetooth with a phone that’s connected to the internet. They are extremely portable and lightweight devices designed for the sole purpose of processing card payments.

Unlike a purpose-built card reader, a phone with Tap to Pay has many apps that not only drain its battery, but also make it more vulnerable to technical issues.

Image: Mobile Transaction

Inexpensive card readers connect, via Bluetooth, with a smartphone to accept card payments.

Here are 3 of the most competitive card readers available in Australia:

The most popular phone-dependent card reader, Square Reader, can be purchased for $65 incl. GST. It has no contractual lock-in or monthly fee, just a pay-as-you-go transaction rate of 1.6%.

Key benefits of Square is its instant transfer option for an added fee, free next- day payouts (including weekends) if the fee feels too high, and many complimentary payment tools without a contract.

Well-known for its EFTPOS machines, Tyro recently launched Tyro Reader for the slightly lower price of $59 incl. GST. It doesn’t have a monthly fee or lock-in and only charges 1.4% per Visa, Mastercard, eftpos and JCB transaction (Amex costs more).

Smart Mini by CommBank is another alternative that is sometimes offered for free, but normally costs $59 with a transaction fee of 1.1% for Mastercard, Visa, American Express, UnionPay, JCB and eftpos cards. It may have hidden fees, but could be your most convenient (and cheapest) option if you already bank with CommBank.