GCash taps NFC payments with Mastercard, Open Fabric

MANILA — GCash users can now tap their NFC-enabled phones to pay for their purchases on point-of-sale (POS) machines that accept Mastercard payments.

The fintech giant formally launched on Wednesday the Tap to Pay contactless payment system that allows GCash users to send payments to merchants that accept Mastercard across the Philippines. This feature, was first announced in April this year.

"Tap to Pay enables GCash users to complete transactions simply by tapping their NFC-enabled Android phone on any compatible point-of-sale (POS) terminal that accepts card payments. This greatly enhances the use of the GCash app as users can now pay using GCash to merchants that accept Mastercard across the Philippines," GCash said.

NFC, or near field communication, allows devices to exchange data wirelessly over very short distances. This is done by touching the devices together or holding them within a few centimeters of each other. NFC is used in mobile payment systems, like Apple Pay and Google Pay. Most flagship phones and some midrange phones have the NFC feature.

GCash said the introduction of Tap to Pay reflects a broader global trend towards tap and go payments, already well established in countries like Singapore, Japan, and the United States. 

The Ayala-led fintech said the new system was developed in collaboration with Singapore-based fintech firm Open Fabric.

"We believe that ensuring tech leadership is critical, and with the Open Fabric platform helping enable Tap to Pay, the next stage of digital transactions is achieved— and one that aligns with the pace of the country’s fast-evolving digital economy," said GCash vice president and head of product innovation Ferdie Perez.

“We look forward to scaling its impact– empowering more Filipinos with inclusive and next-generation payment experiences," said Soma Ramasamy, founder and CEO of Open Fabric.

GCash parent Globe Telecom earlier said it is eyeing an initial public offering for the Philippines' largest fintech but this will on market conditions.