Tap to Pay vs a Card Machine: Which Costs Less?
Compare accepting contactless payments on your phone with buying or renting a card reader, including equipment, fees and the way you work.
The short answer
Tap to Pay can remove the need for a separate reader when a compatible phone and contactless payments meet your needs. A dedicated machine may offer functions or a staff workflow that justify its cost. Compare processing and equipment together, and check what happens when a customer needs a payment method your phone cannot accept.
In this guide
What is the difference?
Tap to Pay turns a supported merchant phone into a contactless acceptance device through a payment provider’s app. The customer taps a supported card or digital wallet against your phone. It is different from you using Apple Pay or Google Pay to buy something yourself.
A physical reader may connect to a phone or operate as a standalone terminal. Features vary by model. SumUp’s documentation, for example, describes its Tap to Pay as contactless-only, requiring internet access, with PIN entry on the phone when needed. A physical reader is required for chip insertion in that setup.
Check whether a phone suits your working day
| Requirement | What to check |
|---|---|
| Phone compatibility | Exact handset, operating system and provider support. |
| Connectivity and battery | Coverage at the selling location and a practical charging plan. |
| Staff use | Whether the phone can stay at the counter and how staff access is controlled. |
| Payment methods | Supported cards, wallets, PIN handling and a fallback for unsupported transactions. |
| Receipts and till functions | Digital or paper receipt needs and compatibility with your sales process. |
An existing phone can reduce additional equipment spending, but it may already be needed for calls, bookings or deliveries. Include a dedicated business phone if that is what the service will really require. Do not assume every terminal works without an internet connection.
Worked example: no reader purchase versus a lower processing rate
Fictional offers. Assume £10,000 of eligible in-person sales monthly. The phone is already available, both options meet the required functions, and common data costs are excluded from both.
| Cost | Tap to Pay offer | Reader offer |
|---|---|---|
| Processing rate | 1.7% | 1.5% |
| Monthly processing | £170 | £150 |
| Additional equipment purchase | £0 | £150 |
| First-year total | £2,040 | £1,950 |
The reader offer saves £20 in monthly processing and £90 in the first year after purchase. The £150 equipment cost is recovered after 7.5 months of £20 savings. At lower sales, that takes longer; at an identical processing rate, the reader purchase would not create a processing saving.
Build the complete equipment and processing budget
- Include any new phone, reader, stand, charger, printer or required accessory.
- Use the relevant card-group rates, not one rate applied to unsupported categories.
- Add subscriptions, separate connectivity and any required till integration.
- Check device replacement, warranty and support arrangements.
- Include a backup only if the business actually needs and will pay for it.
Buying a reader and renting one are different commitments. Our card machine cost guide explains the equipment budget. A short-term event and a permanent shop may reach different decisions using the same offers.
Try the real payment workflow before deciding
Ask for a demonstration of a sale, a PIN request where supported, a refund and a receipt. Check how staff identify a successful payment and how the day’s transactions are reconciled. Test the device at the place you will use it before relying on it during a busy session.
Use the comparison calculator for the processing rates, recurring charges and additional equipment costs. If both options use your existing phone and connection, keep those common costs consistent. For a broader till decision, see whether you need an EPOS system or just a reader.
Common questions
Is Tap to Pay the same as a payment link?
No. Tap to Pay accepts an in-person contactless payment on the merchant’s phone. A payment link opens a customer checkout page and is generally priced under the relevant remote-payment tariff.
Can Tap to Pay replace every card machine?
No. Compatibility, accepted payment methods, connectivity, receipts and staff requirements can make a dedicated reader or terminal more suitable.
Put your own figures to work.
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Sources and how to use this guide
Primary references checked on 15 October 2026:
- SumUp: Tap to Pay compatibility, connectivity and accepted payments
- SumUp UK: Tap to Pay product information
Worked examples are original fictional scenarios, not customer results, market averages or provider quotations. Unless stated otherwise, they use a consistent VAT basis and include only the costs listed. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.