SoftPOS Explained: Taking Card Payments On Your Phone In 2026

SoftPOS is the industry name for software that turns an ordinary smartphone into a card machine. The customer taps their contactless card, phone or watch on the back of your phone, and the payment goes through. No separate reader needed.

You'll also see it called Tap to Pay, Tap on Phone or tap to pay on iPhone and Android. They're all the same idea. This guide explains how it works, what UK providers charge, and when you'll still want a proper reader. Prices were checked October 2026.

How SoftPOS works

Most modern phones have an NFC chip, the same thing that lets you pay with your phone. SoftPOS apps use that chip the other way round, to read a customer's card.

1. You enter the amount in your provider's app.
2. The customer taps their card or device on your phone.
3. If a PIN is needed, the customer types it on your phone's screen, which is secured by the app.
4. The payment is approved and you can send a digital receipt.

The card details are encrypted by the software and the phone's secure hardware, and your phone never stores the full card number.

What you need

• An iPhone or Android phone with NFC that your provider supports. Check their list of compatible models.
• An up to date operating system.
• Your provider's app and an account with them.
• A data connection, either mobile data or WiFi.

SoftPOS prices from UK providers

Other providers, including SumUp, Stripe and Revolut, also offer tap to pay on phones. Check the current rate on their pricing pages before you sign up, as tap to pay can be priced differently from their readers.

The good bits

• No hardware cost. You already own the phone.
• Easy to carry. Great for deliveries, home visits and pop ups.
• Fast to start. Many providers let you take a payment the same day you're approved.
• A good backup. If your main reader breaks or runs flat, your phone can take over.

The limits

• Contactless only. No chip and PIN, no swiping. Most cards in the UK are contactless, but not all.
• Battery and signal. Your phone does everything, so it drains faster and needs a connection.
• No printed receipts. Receipts are by email or text.
• Counter use is awkward. Handing your phone across the counter all day isn't ideal.
• Phone compatibility. Older phones and some Android models aren't supported.

Contactless limits

Payments over the contactless limit usually need a PIN. With SoftPOS, the customer can enter it on your screen, or pay with their phone or watch, which use their own security. See our guide to the UK contactless limit for the details.

SoftPOS vs a card reader

For a business that takes a handful of payments a week, SoftPOS can be all you need. For a café, shop or busy stall, a reader is quicker and more reliable, and it keeps your phone free.

Is SoftPOS safe?

SoftPOS apps from established providers must meet the card schemes' security standards. The phone doesn't store card numbers, payments are encrypted, and PINs are entered in a protected part of the app. Keep your phone updated, lock it with a passcode and only install apps from official stores.

Fees on real numbers

Here's what a month of tap to pay costs on £1,000 of sales at £25 each (40 payments).

Tide's fixed fee is higher on tap to pay than on its reader, so the gap grows on small sales. On a £5 sale, Square takes about 9p and Tide about 19p.

Signs you've outgrown tap to pay

SoftPOS is a great way to start, but watch for these signs that it's time to add a reader:

• Customers are asking to use chip and PIN, or you're turning away cards that won't tap.
• Your phone is dying by mid afternoon on busy days.
• You're handing your phone over dozens of times a day, which slows the queue and risks drops.
• You want printed receipts for customers who ask for them.
• More than one person needs to take payments at the same time.

The good news is that most providers let you use tap to pay and a reader on the same account. Buy a cheap reader for the counter and keep tap to pay as a backup. You won't need to change provider or set anything up twice.

Who SoftPOS is for

• Tradespeople taking payment at the end of a job. See our guide for tradespeople.
• Market traders and pop ups with low volumes.
• Delivery drivers and mobile services.
• Any business that wants a free backup to its main card machine.

Pros and cons summary

Pros

• Free to start
• Nothing extra to carry
• Works anywhere with a signal

Cons

• Contactless only
• Ties up your phone
• No printed receipts

Getting set up

1. Pick a provider that supports your phone.
2. Sign up and verify your business.
3. Turn on tap to pay in the app and follow the prompts.
4. Take a small test payment and refund it.

Our guide to tap to pay on iPhone and Android has step by step instructions.

Our take

SoftPOS is one of the best things to happen to small traders in years. It removes the cost of getting started and gives every business a free backup. Just don't expect it to replace a reader on a busy counter.

FAQs

What does SoftPOS mean?

Software point of sale. It means using software on a phone or tablet to accept card payments without a separate card reader.

Can customers enter their PIN on my phone?

Yes, with providers that support PIN entry on screen. The app protects the PIN.

Is SoftPOS cheaper than a card reader?

You save the cost of a reader, but transaction fees can be the same or higher. Compare the rates.

Can I take chip and PIN with SoftPOS?

No. It's contactless only, though customers can enter a PIN on screen for bigger payments where supported.

Does SoftPOS work offline?

Generally no. You need a data connection to take payments.

Which phones work with SoftPOS?

Most recent iPhones and many NFC Android phones. Check your provider's compatibility list.