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The Future of Contactless Payments: What You Need to Know

Written by Mikayla Corrie-Muller | Nov 20, 2025 4:53:53 AM

The Future of Contactless Payments in Australia

Contactless payments are now part of everyday life in Australia. Mastercard says that tap to pay is growing in many areas because people want convenience, speed, and hygiene
(Read more about tapping into the future of payments).

Customers expect simple, secure, mobile friendly payment options everywhere they shop. As technology changes, so does what is considered normal at checkout. Knowing where contactless payments are heading helps businesses stay competitive, meet customer expectations and reduce operational problems.

SoftPOS Will Drive the Next Payment Evolution

SoftPOS, or software point of sale, lets merchants accept payments directly on approved mobile devices. No terminals, no cables, and no bulky hardware on the counter. It is one of the biggest shifts in the payments landscape.

Research shows that SoftPOS adoption is rising because it is flexible, affordable and ideal for small and mobile businesses (See the ResearchGate publication).

You can read more about the future of contactless payments
here.

Why SoftPOS Is Gaining Momentum

  • Lower operating costs
  • No repair delays or terminal failures
  • Faster onboarding for casual or seasonal staff
  • Ideal for markets, mobile services, hospitality and deliveries
  • Software updates that improve performance over time

Nexxtap’s Android based SoftPOS platform supports this shift and helps Australian businesses stay agile without relying on expensive or unreliable hardware.

Digital Wallets Are Becoming the Preferred Way to Pay

Visa reports strong growth in digital wallet payments, supported by trust in tokenisation and biometric security (Read Visa’s global insights here and here).

Many Australians now prefer paying with their phone or smartwatch instead of a physical card.

Impacts on Customer Behaviour

  • Mobile wallets are replacing traditional wallets
  • Customers expect tap to pay everywhere, including small stalls and pop ups
  • Faster checkout means fewer queues and happier shoppers
  • Wallet based loyalty programs influence purchase choices

To keep up, merchants need payment tools that support seamless wallet acceptance.

Integrated Payments Will Become Essential

Integrated payments link acceptance tools directly with a business’s systems. This creates a smooth flow of data between payments, invoicing, bookings, POS tools and reporting.

While embedded finance gets a lot of attention, integrated payments are more important for small businesses because they improve daily operations and reduce manual tasks.

Benefits of Integrated Payments

  • Reduces manual reconciliation
  • Removes double entry across systems
  • Improves cash flow visibility
  • Supports automation and faster processing
  • Creates smoother customer experiences

As businesses expand, integrated payments help reduce admin strain and replace outdated processes.

AI Will Strengthen Security and Reduce Friction

The Forbes Tech Council says that AI fraud detection finds unusual patterns early. This helps keep transactions safe and avoids problems for customers (Read the full article here).

You can read more about AI and security
here.

What To Expect Next

  • More accurate risk scoring
  • Fewer false declines
  • Faster dispute resolution
  • Better protection for merchants
  • Improved monitoring for card present transactions

With fraud concerns increasing, AI supported decisioning will continue to shape how providers manage security.

Consumer Expectations Are Shifting Fast

Visa’s insights show that customer expectations now go well beyond tapping a card. People want payments to fit smoothly into their experience, whether they are shopping in store, picking up takeaway or paying a tradesperson at home.

Customer Expectations for 2025 and Beyond

  • Payments should feel fast and almost invisible
  •  No long waits or awkward checkout moments
  • Support for wallets, wearables and multiple payment methods
  • Consistent experiences across in person and mobile interactions

This puts pressure on businesses to choose solutions that minimise friction.

Traditional Hardware Will Decline as Mobile Solutions Grow

Research shows a steady decline in traditional terminals as contactless and mobile solutions expand. Customers are used to tapping on their phones. Businesses are realising they can accept payments using devices they already have.

You can read more about the future of payment hardware
here.

Why Hardware Is Losing Relevance

  • High rental and repair fees
  • Limited mobility for on site or field workers
  • Slow update cycles
  • Less flexible for multi location or casual staff
  • Higher reliance on physical parts

Modern mobile devices now meet strict compliance standards, making them a strong long term alternative.

 

Data Driven Insights Are Shaping Integrated Payments

Integrated payments are beginning to support more than quick transactions. They help businesses understand customer behaviour and sales patterns.

The Reserve Bank of Australia notes that digital payment ecosystems now play a key role in financial resilience for SMEs (Read more here).

At the same time, AI is becoming a built in feature in payment platforms. It detects unusual activity, predicts peak times and assists with reconciliation. Mastercard highlights that AI enhanced systems also strengthen fraud detection and authorisation accuracy (Read insights here).

What This Means for Australian Businesses

The future of contactless payments is:
• software first
• mobile driven
• integrated
• secure
• hardware free

For Australian merchants, this means choosing a payment solution that supports these trends. Nexxtap’s Android based SoftPOS platform provides integrated payments, transparent pricing and a smooth operational experience.

Conclusion

The future of contactless payments is moving toward fast, secure and seamless transactions. SoftPOS is replacing traditional terminals. Digital wallets are becoming the preferred way to pay. AI is strengthening security without slowing down checkout experiences.

Businesses that adapt now will save time, reduce costs and meet customer expectations with ease. Nexxtap’s integrated SoftPOS technology helps merchants step confidently into the future, with far less hardware cluttering the counter.

FAQs 

What is SoftPOS?                                                                                                                                SoftPOS is software that lets businesses accept contactless card payments directly on approved mobile devices.

Is SoftPOS secure?
Yes, SoftPOS platforms must meet strict PCI security standards. Many now include AI driven fraud protection.

Will traditional EFTPOS machines disappear?
Not immediately, but adoption is declining as more businesses switch to mobile based payment solutions.

Why are digital wallets growing?
Because they are convenient, secure and built into devices people carry every day.

Does Nexxtap support integrated payments?
Yes, Nexxtap offers an Android based SoftPOS platform with integrated payments and transparent pricing.