Cashless payments in Czechia to see breakthrough after new Apple feature

It has finally become substantially easier for small businesses and consumers to conduct payments nationwide after tech firm Apple has this week made its Tap to Pay service—rolled out in 2022—available to several European countries, including Czechia. Tap to Pay now joins the Czech Cvak service as modern technologies that enable cashless transactions without needing a payment terminal.

Tap to Pay allows iPhone users to turn their device into a payment terminal itself, eliminating the need for additional hardware for merchants. "It empowers millions of merchants to seamlessly and securely accept all types of payments," said Apple representatives. It has been available in Czechia since Tuesday this week.

iPhone users can tap their contactless credit or debit card, iPhone, Apple Watch, or other digital wallet onto a merchant's iPhone and make a secure payment using NFC-based technology. 

The new feature is available on iPhone Xs and later models, but requires the latest version of iOS to be installed.  The usability of Tap to Pay varies by country, as Apple has established different partnerships with financial institutions in each location. 

According to Apple, Tap to Pay on the iPhone can be used with contactless credit and debit cards issued by major banks such as American Express, Discover, Mastercard, and Visa. In Czechia, the Adyen, SumUp, Viva, Erste Bank, and Global Payments, and Stripe payment services all support Tap to Pay.

Earlier this year, in a push to advance cashless transactions, four Czech banks— spearheaded by Air Bank—rolled out a novel solution that bears great resemblance to Tap to Pay: Cvak. The software, like Apple’s feature, allows vendors to accept payments via an app.

Pledging reduced transaction costs for merchants and more convenience, banks behind the project—free to use—are confident that Cvak will expand cashless payments to areas where they were previously uncommon, such as mountain resorts.

Over 2,000 vendors have downloaded and used the app, and a total of CZK 13 million have passed (virtual) hands via the app. The seller pays a fee of 0.8 percent of the entire transaction.

Customers can make payments through Cvak using their mobile banking app from participating banks, such as Air Bank, Fio banka, mBank, and Moneta Money Bank.

Indeed, cashless transactions are on the rise in Czechia: around 90 percent of Czechs use cashless payments at least once a week, according to Air Bank. Commentators in financial-advice website Penize.cz also note that payment service Qerko’s growing popularity in the country, with 1.2 million registered users.

Last November, several major Czech banks also streamlined the process of transferring money between accounts by enabling payments based solely on phone numbers.

Neighboring Poland, for example, has also found huge success with BLIK (a mobile-payment system that allows users to make instant payments). This could soon make its way to Czechia.