HSBC UK lets small businesses take card payments on a phone

HSBC UK is letting eligible small business customers take card payments on a smartphone, with no separate card reader. The bank announced the feature, called Tap to Pay, in a news release on Tuesday, Nov. 10. Stripe, a payments company, powers it.

What changed

Businesses get started in the HSBC Business Banking app. They can then accept supported contactless payments on a compatible smartphone. Contactless means the customer taps a card or phone instead of inserting or swiping a card.

Gavin Maclean, HSBC's UK head of global payment solutions, called it an additional, simple way for sole traders and businesses to take payments. A sole trader is someone who runs a business on their own. Stripe's Marc Fryer said small businesses are slowed by payment administration and that the aim is to take that hassle away.

The timing fits a shift in shopper habits. A PYMNTS Intelligence report found 8.2% of in-store shoppers paid for their latest purchase with a mobile wallet, up from 4.3% in 2023. Most shoppers still tap a card.

What is not known yet

The material does not say what Tap to Pay costs, which phones count as compatible, or what makes a business eligible. It also does not say how many customers can use it today. Business owners who are interested should ask HSBC for those details.